International grain markets continue to be affected by the concerns for global trade in respect of the coronavirus. Over the past two weeks, we have seen MATIF wheat for December drop back about €6/t, with even bigger falls at the US side.

The price drop is due to fears of an overall economic decline leading to a fall in demand. But there is also increasing concern regarding sea transport, with ships being delayed at ports in parts of the world.

If this were to be an ongoing issue, it could result in unavailability and upward price pressure for ingredients in the medium term.

That said, the expectation of a new record global wheat crop in 2020 (763mt) continues to weigh on sentiment and to pressure wheat prices, both old and new crop.

Prices here are reflecting the global pressures this week

Maize is more affected by coronavirus, as it is hitting US export demand. And production prospects from South America look good, with harvest already under way.

Prices here are reflecting the global pressures this week. Nearby wheat has slipped to either side of €200/t, with barley either side of €172/t.

At this point in the year, there is little or no premium for holding into May, as prices for that position are broadly reflecting spot positions.

New-crop prices are also affected, with November forward wheat back to €185 to €187/t.

However, barley remains around €173 to €175/t as wheat comes back towards barley, with maize being offered around €192/t.