Grain markets continue to operate without any immediate reason for joy from a seller’s perspective. Basically, demand for wheat has turned a deficit into a possible surplus and the market is responding. Chicago wheat futures dropped from €167/t in early February to €146/t currently. EU MATIF prices for nearby and December wheat have also fallen in the same time frame.

The one bit of news to support the market was the announcement of the re-opening of the Ensus bioethanol plant in the UK earlier than had been anticipated. However, the AHDB reported that any price benefit was short-lived, as imported maize is likely to be its main feedstock now.

Oilseed rape prices have also come under pressure following a drop in all vegetable oil prices due to an oversupply of palm oil. Increasing tension between Canada and China is also impacting negatively.

While broken weather may now help overall feed demand, it will take many weeks of this to bring active demand into the home market.

Lack of volume demand means that native prices are more nominal that actual. Spot wheat can be back to €205/t, but a suitable future position might still make €210/t. Barley is even more difficult, but sellers might find prices in the early €190s.

November prices remain similar to last week, with €185 to €188/t for wheat and around €175/t for barley.