Markets continued to fall over the past week, but took a dramatic drop on Tuesday.

Nearby French wheat prices (dry prices) dropped €6/t to €290.50/t on Tuesday evening, while the December price, which has most relevance to the Irish harvest price, dropped by €3/t to €274.25/t.

That’s down almost €10/t on the same time last week and almost €15/t from the week before.

This week, the Agriculture and Horticulture Development Board (AHDB) in the UK was negative for barley, wheat and maize prices for the next few weeks.

A number of factors are at play. Among them is the expected record wheat crop from Australia. The crop is expected to reach 42m tonnes. The corn harvest in Brazil is also expected to hit records.

Russian wheat prices remain competitive and this is also putting pressure on global grain prices.

Markets are also reacting to increasing COVID-19 infections in China, as there are fears demand could reduce there.

Dry and cold weather was affecting wheat crops in the United States in recent weeks, with fears this could reduce crop yields.

The United States Department of Agriculture (USDA) drought monitor has shown that 64% of the winter wheat area was experiencing drought on 3 January, down from 69% the week before. However, plantings are expected to be up this season.

Oilseeds

French oilseed rape prices were dropping this week. The November price was at €569/t on Tuesday evening. This price was at €583.50/t on Friday, so it’s a significant drop.

Soya beans are still at massive prices, but did drop back slightly in the US in recent days.

Eyes are on Argentina and its soya bean crop.

Reports are that 81.8% of the soybean crop has been planted, this is about 11% behind the five-year average due to drought.

Some areas may not be planted and the markets will be supported by this.

WASDE

The USDA’s World Agricultural Supply and Demand Estimates (WASDE) report is due on 12 January.

Native prices

At home, spot prices for barley and wheat are at approximately €297/t and €308/t respectively, down from last week.

Imported barley this week is at approximately €300/t, while wheat is coming in at approximately €315/t.

Corn saw a decrease to about €312/t, while soya continued to rise at €650/t.

The November price for native barley is ranging from about €270/t to €285/t.