All futures markets weakened last week with news of increased maize production estimates and somewhat improved prospects for southern hemisphere production in the year ahead.

As the season progresses, it is more likely that these forecasts of improved US maize yield prospects in particular are likely to materialise, baring disasters.

While there is little doubt but that global wheat production will be well down on last year, any possibility of a similar outcome for maize production appears to be fading

This is now affecting total grain supply and acting to pull down prices for other grains from their recent highs.

Maize

Markets continue to be pressured by the recent supply numbers released for global maize production. While there is little doubt but that global wheat production will be well down on last year, any possibility of a similar outcome for maize production appears to be fading. But price sentiment will still be influenced by planting and early crop progress in south America.

Wheat

Global wheat production will be lower in 2018/19 irrespective of what will happen in Australia, in particular. Much of the world’s crop is already gathered for 2018 and a drawdown on stocks appears inevitable.

Prices

On the Euronext exchange (MATIF) in Paris, maize, milling wheat and oilseed rape futures were all down over the past week.

Milling wheat for delivery in December dropped €9.90/t since last week to finish yesterday’s trade at €199/t.

Oilseed rape price was also down on last week with the December Paris MATIF back €13.50/t in the week to finish yesterday at €372/t.

November 2018 maize prices recorded a €17.30/t drop in the past week to close on Monday at €180/t.

US markets

The trend was no different in US markets with wheat, maize and soya beans all down on the CME markets over the past seven days.

2018 December Chicago futures now stand at $142.35/t for maize, back $6.10/t. December wheat opened on Tuesday at $193.64/t, back $13.80/t.

November soya beans opened on Tuesday at $311.22/t, down $14.80/t on the previous week.