After many weeks of downwards pressure driven by high supplies, wheat seems to have turned the corner, as harvest pressure subsides and new supply fears emerge in the market.
As harvest in the northern hemisphere comes to an end, new supply fears in Australia are beginning to impact. \Donal O' Leary
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Having been the main driver of downward pressure in recent weeks, wheat prices appear to be on the up once again.
This seems to be mainly a result of reduced production forecasts in Australia arising from the dry conditions but the ending of harvest pressure may also be a factor.
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The market focus is now switching to the situation in the southern hemisphere. There is also concern for maize production in Brazil.
While this crop is currently being sown in good planting conditions, there are currently fears about the longer term prospects for dry conditions.
While most wheat futures markets show signs of recovery this week, maize, and US maize in particular, continues to weaken. This is mainly a consequence of largely favourable weather forecasts for US maize yields but the ongoing trade wars are adding to export and price pressures.
Tight European rape supplies continue to help prices. Efforts are being made to export much of the Irish crop with a suggested ex-store price of around €375/t dry.
Native physical prices are broadly similar to last week but with a firmer market tone. Spot sales are only happening in pressure situations and are not representative of the market. November wheat is somewhat stronger at €170 to €173/t with barley at €162/t. Pushing out to May sees prices remain similar at €180/t for wheat and €170/t for barley.
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Having been the main driver of downward pressure in recent weeks, wheat prices appear to be on the up once again.
This seems to be mainly a result of reduced production forecasts in Australia arising from the dry conditions but the ending of harvest pressure may also be a factor.
The market focus is now switching to the situation in the southern hemisphere. There is also concern for maize production in Brazil.
While this crop is currently being sown in good planting conditions, there are currently fears about the longer term prospects for dry conditions.
While most wheat futures markets show signs of recovery this week, maize, and US maize in particular, continues to weaken. This is mainly a consequence of largely favourable weather forecasts for US maize yields but the ongoing trade wars are adding to export and price pressures.
Tight European rape supplies continue to help prices. Efforts are being made to export much of the Irish crop with a suggested ex-store price of around €375/t dry.
Native physical prices are broadly similar to last week but with a firmer market tone. Spot sales are only happening in pressure situations and are not representative of the market. November wheat is somewhat stronger at €170 to €173/t with barley at €162/t. Pushing out to May sees prices remain similar at €180/t for wheat and €170/t for barley.
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