International futures markets had a slightly weaker tone over the past week, with the bulk of the negative movement occurring this week.

MATIF December wheat closed last Friday at €180/t, but on Tuesday it closed at €178.25/t. That said, the market remains firmer and mildly positive.

Wheat is being helped by the ongoing problems with dryness in Australia and Argentina, as well as the difficulties in completing the US spring wheat harvest.

Dryness is a concern in South America, as it is hampering maize planting in the main exporting countries. And the slow rate of maturity and harvest of US maize crops continues to be a cause of unquantifiable concern.

On the barley front, the possibility of higher global stocks arising from an increase in EU production numbers may act to force a bigger discount to wheat in an effort to clear stocks.

Rape prices appear to have weakened, due mainly to very high import levels into the EU and the fact that many crushers may be well covered in the short term. However, some believe that overall supply could be tight in the EU as the season progresses.

Native grain prices remain broadly similar to last week due to lack of current market activity. Near-by wheat remains around €178 to €180/t, with barley at €168/t. Looking out to May, wheat remains around €185/t with barley between €175 and €177/t.