Supply dominates international market sentiment once again, with futures prices now at their lowest level for a number of years. On Tuesday last, MATIF wheat closed down at €156.75/t, having been as high as €185.50 in early July. Chicago wheat went as low as $4.05/bushel (€125/t) earlier this week and maize went down to $3.36/bu (€111/t). All these prices reflect a significant decrease on a few months ago when global output estimates were lower.

Production concerns for next harvest continue in parts of the EU where wet reduced the area planted to winter crops. This will result in more spring crops, lower yield and reduced production.

Elsewhere, extreme dryness is a serious concern in parts of Spain and parts of south America. So there may be more challenges on the horizon for 2018, but current supplies mean that this is irrelevant for the time being.

Domestic prices remain similar, but barley is strengthening in nearby positions but weakening into new crop. Feed wheat is put at €175/t out to January, with a carry of €3/t to May. Spot barley has risen to €173/t, with May positions put around €175/t.

November wheat and barley are currently put at €173/t and €168/t respectively.

UK delivered feed wheat prices were flat or up last week, with East Anglia put at £141/t, Yorkshire at £149/t and central Scotland at £152/t.

Average UK ex-farm prices were up slightly also at £138.30/t for feed wheat and £124.60/t for feed barley.