Markets generally strengthened last week, as weather continued to play a role in sentiment. Planting has continued in the US, but rain continues also, which threatens crops in the ground. While there is still uncertainty over the final areas of maize and soya beans, the debate continues at to whether the spring rainfall will be an asset for yield potential or a negative because of its effects on the land.
While the US situation remains uncertain, European markets have been more subdued, as beneficial weather and prospects for a larger cereal crop this harvest have pressured price expectations. Recent storms around the Mediterranean region could add to concerns for the European crop, as these could cause significant crop damage should they escalate.
Additional attention is now also being placed on crude oil price movement, following increased tensions in the Middle East. This could add further support to global agricultural commodities.
Native prices remain broadly similar, despite the backdrop of the US price increase. But they have been very variable, with some better prices only on offer for a few hours on given days.
Spot wheat remains around €200 to €202/t, with barley still around €175/t, but with slightly more optimism. November wheat is back on last week at €185 to €188/t, but barley is up slightly at €177/t.
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