Nearby grain prices dropped significantly over the week, with little news in the market to support them.

To put the drop into perspective, MATIF wheat for May finished at €280/t last Friday. That was down €11.50/t on the week previous.

The December price dropped €6.75/t in the same time period and by Wednesday afternoon 1 March, the December price was at €272.25/t.

Irish prices generally track that French wheat price.

Nearby French wheat and maize prices are nearly on a par with each other, although the French maize price for next November continues to trade under wheat.

The drop in prices for the new crop could put pressure on grain prices at home.

There are now reports that the Black Sea grain corridor will be extended from 19 March and this, coupled with competitive Russian wheat prices, is pressuring markets.

No decision has been made on the corridor yet.

The Agriculture and Horticulture Development Board (AHDB) in the UK has gone to a negative outlook for the next two to six months on wheat, maize and barley.

Drought has been a concern for some of the wheat growing regions in the US.

Rain this week came at a good time for crop health and prices dropped as a result.

Oilseed rape

Oilseed rape prices fell dramatically last week. The November price finished at €543.50/t, almost €20/t behind the week before. The AHDB is also negative on oilseed and soya bean prices. The report stated that in the short term, prices are being supported by the soya bean market.

In the longer term, the AHDB reports that the EU oilseed crops are looking well and European ending stocks are going to increase.

A record Brazilian soya bean crop is also expected. About one third of this harvest is estimated to be complete.

Native prices

Dried barley for next November is being priced at around €260/t, down on the two previous weeks, while wheat is remaining fairly steady at about €20/t above that price.

The Free-On-Board (FOB) Creil spot price (July basis) dropped €5/t last week to €295/t, but was back up on Wednesday to €300/t, the previous week’s price. Boortmalt uses the Planet FOB Creil price to calculate its harvest price in Ireland.

In other news, Reuters is reporting that billionaire Bill Gates has bought a 3.76% stake in Heineken. A total of 10.8 million shares are reported to have been purchased at a value of €883m. He must think there’s money to be made in beer. Malting barley growers will no doubt watch this space.