Wheat futures markets had a buoyant fortnight up to the middle of last week when they gained about €40/t, but they have remained flat since then.

They rise and fall most days, but December MATIF wheat continued to settle in the early- to mid-€360s. It closed last week at €361.25/t, rose a further €7.25 on Tuesday, but closed that day at €359.25/t.

Sentiment remains strong, but it is becoming more obvious that physical demand and prices are moving in a somewhat different direction to futures markets, with suggestions that demand may be weakening in response to price pressures.

There is still real concern on US winter wheat production, where crop condition has been downgraded once again. There are also concerns for spring wheat production there, which may extend into Canada.

It is reported that Russian wheat exports, though limited, continue, despite sanctions. The latest Egyptian tender purchased wheat from Russia, France and Bulgaria.

Maize

Chicago maize futures prices dropped back slightly early this week, possibly in response to a reported lowering of physical demand, especially for old crop.

Maize plantings there are behind normal for the time of year, with cold and wet weather delaying the start of planting in many areas.

This has been mainly favourable for new-crop prices, which have continued to increase for some time and one must wonder if the weakening seen this week will be temporary or if it will represent a flattening of prices for a period.

In South America, weather in Brazil is said to be favourable for flowering in maize crops. This is a key factor in generating yield potential, as excessive temperatures during this critical fertilisation phase can limit yield potential.

Meanwhile, the most recent ADHB report states that the grain truckers strike in Argentina has ended and that activity is back to near-normal levels again. Last week’s strike, in the middle of the busy maize and soya bean harvest period, effectively saw transport of all grains grind to a halt.

Native prices

Native prices are stronger again this week. Nearby wheat is in the €420/t to €430/t range, depending on the day, but it was more at the upper end of this range up to recently.

Barley remains stronger and is in the €428 to €435/t range.

New-crop prices are up by about €5/t also. December barley is around €355 to €360/t, while wheat is in the €365 to €370/t range.

Earlier this week, Glanbia offered €307/t for green barley for harvest and €317/t for green wheat.