Grain prices were not looking good over the past week. As an example, French wheat on a December contract closed last week at €225.25/t, down €5.75/t on the week previous. On Wednesday afternoon, that price was at €224.50/t.UK prices also fell, with the November price falling from £192.50/t last Friday to £189.95/t on Wednesday afternoon.
Grain prices were not looking good over the past week. As an example, French wheat on a December contract closed last week at €225.25/t, down €5.75/t on the week previous. On Wednesday afternoon, that price was at €224.50/t.
UK prices also fell, with the November price falling from £192.50/t last Friday to £189.95/t on Wednesday afternoon.
Production may not be at its best in Europe, but Black Sea grain remains competitive and the harvest is progressing well in the US.
This is contributing to prices staying down. Some 82% of winter wheat is harvested in the US, while 74% of spring wheat is in good or excellent condition.
The Agriculture and Horticulture Development Board (AHDB) reported that two different Russian wheat forecasts had increased their production estimates.
Both estimates increased by over 1m tonnes.
Dry weather has been an issue in Europe. However, this week, heavy rain and thunderstorms hit crops in France and a report from Agritel stated harvest is halted for a few days and KPH is likely to be affected by this weather.
That report also said work in the fields “confirms the impression of a very poor straw cereal harvest”.
A total of 68% of maize in the US is reported to be in good or excellent condition. Maize in Ukraine is being affected by dry weather. An estimate this week took 5m tonnes off the forecast. Drought is reported to be affecting crops in Russia, as well as Romania, Bulgaria and Hungary.
Oilseed rape
Oilseed rape prices also fell. On Friday, the November French price hit €480.25/t, a drop of €14.25/t. It dropped further this week, but came back up and on Wednesday afternoon was at €481/t.
The prices are following the trend of soybeans. Reports this week were for suitable weather in the US midwest and this week prices fell to a three-year low, according to the AHDB.
A total of 67% of soybean crops in the US are reported to be in good or excellent condition. There is plenty of competition in the soybean market from Brazil, which will not be a help for prices to pick up.
Native prices
At home, co-ops look to be slow to publish prices, with little improvement.
Dry November barley is around €215/t and wheat is at around €230/t. Maize is at about €220/t. This could be a good thing as it is higher than barley, therefore making barley more competitive.
The average malting barley price currently stands at €262.91/t and is subject to a €10/t charge, bringing the price to €252.91/t.
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