The weakening of international grain prices continued over the past week. The downward trend commenced over two weeks ago following the USDA announcement that global wheat supply was higher than anticipated and that global maize supply was somewhat lower.

US maize prices dropped at the time as a result but have since recovered and seem relatively stable at around $4.25-$4.30/bushel (€123-€124/t) in recent days.

While US wheat prices recovered slightly after the initial fall following the announcement, the price slide has continued. In the past few days US wheat has been floating either side of $4.25/bu (€115/t) but this is back from $7.10/bu (€192/t) at the end of last October.

European wheat prices also weakened in response to the global trend.

There is concern about increasing dryness problems in parts of the US wheat growing regions. There are also concerns about the arrival of freezing temperatures in parts of Central Europe but, for the moment at least, snow cover may be adequate to protect the crop beneath. Neither are impacting on the market currently.

This week the HGCA reports that wheat purchased by Iran in December (thought to be around 250,000t) will be mainly sourced from Germany. The report asks if this sale is a direct result of the recent relaxation of Western sanctions.

Prices here have weakened also. Spot wheat is quoted as €203 to €205/t, with barley at €172-€173/t. November prices have weakened also, but only slightly. November wheat is quoted at €183/t with barley back to €170/t.