International futures markets continue to strengthen for new crop grain as markets respond to factors such as weather challenges and the reality of lower production in the southern hemisphere. One might argue that futures prices are following up physical prices, as shippers try to access grain from reluctant sellers who continue to hold out for higher prices.

In the main, physical prices have been stronger than the trade market while the opinions of buyers and sellers adjust to the varying market influences. Whether futures markets continue their upward climb, or slip back yet again, seems not to be within the control of a single influence.

As we glide from this year into the next, one must wonder if the recent price rise will continue into the new year or fade once again into history. There is little doubt but that market transparency is decreasing the spikes and the sudden troughs but it is also helping to keep prices lower over the longer term.

Closer to home a lowering of overall demand for feed is slowing purchase activity and making feed grains difficult to price. Compounders remain reasonably well covered and are understandably unwilling to take cover on stocks that might not be used.

Physical prices here have remained largely similar for the past few weeks. Whether this situation continues into the New Year, or improves, only time will tell.