Following a prolonged period of price decline in US futures, they may have turned the corner earlier this week following news that US maize, soya bean and spring wheat crops were beginning to suffer from continued dryness. However, it is important to state that this is not yet a real problem but it has caused market sentiment to consider the possibility of a drought hit on global maize.

The changing sentiment has also influenced MATIF prices with December wheat having moved back up to almost €189/t by Tuesday evening. But regardless of what is happening on futures markets, our physical market is taking a detached view as merchants attempt to purchase what will inevitably be a smaller grain harvest. And this is happening in a year when both feed wheat and feeding barley supplies will be tight globally.

Recent market news has been favourable for cereal prices, with heat and dryness being significant factors. However, the market remains difficult due to a big maize harvest forecast impacting on import prices but this may be changing.

Lack of significant purchasing at trade level continues to make real trade prices difficult but anyone purchasing grain now is having to pay around €200/t to secure supply. Users around the country are freely paying €197 to €200/t to secure dry barley supplies. And it would appear that €175/t is the common minimum now on offer for green barley.