International grain prices weakened over the past week on the back of increased maize harvest expectations from the better weather outlook in the US in combination with large Black Sea crops now pressuring prices.
Those watching maize are awaiting next week’s USDA report, which will attempt to clarify the situation with regard to the final maize area in the US and give an initial stab at yield.
Currency continues to be a factor, with the stronger dollar and worsening US trade relationships impacting more heavily on US prices and also on markets in general.
The sentiment on wheat was more neutral, but has recently deteriorated on the back of large crops in the EU, US and Ukraine. And while there have been recent downward revisions of Russian and Canadian crop forecasts, the pressure is once again coming from maize. Barley sentiment has also become more negative.
As of now, the general sentiment on oilseed rape prices is more bullish as UK, French and German harvests come in below expectations.
Native prices have been weakened by the recent sentiment change which saw MATIF wheat drop from €180/t last Thursday week to €174.50 this Wednesday. The market is now firmly based on new-crop, with definite harvest pressure for the moment. November prices are now around €178/t for wheat and €170/t for barley.
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