Grain markets continue to bounce about as international markets trend upwards once again. International markets now appear to be drawing back once again from what was a negative over-reaction in recent weeks but high total supply still seems set to be a big factor in price and demand sentiment as harvest progresses.

Low sterling values provided some opportunity for UK grain imports recently.

This week’s USDA report helped to steady the ship as US maize stocks continue to decline following higher exports resulting from reduced production in Brazil. As a result, US prices have once again taken an upward trajectory but from a very low base. MATIF prices have benefited also but now we have additional fears relating to the consequences of the significant wet in parts of the EU.

Downgrading of milling wheat in countries like France and Germany could result in aggressive exporting to clear stocks of this ‘feed’ product. The decision to do this or not may be influenced by nearby movements in milling wheat prices which will be influenced by the proportion of losses expected from the milling pile.

Prices here are weaker this week as harvest pressure now begins to bite in earnest. Spot wheat is now in the €156 to €159/t bracket, with barley €10/t lower. November wheat is now closer to €158/9 per tonne, with barley around €150/t. This week Glanbia offered its growers €127/t for wheat and €117/t for green barley for September.