Futures markets have once again swung back into neutral or negative territory. So futures prices are broadly flat to slightly softer, but it would appear that this is not spilling over into physical markets, at least not here. MATIF December futures wheat price closed on Tuesday at €178.25/t, down €3/t from a month earlier. Chicago wheat is also down in the period, but it has been largely dancing about since the start of November. Chicago maize has been in decline since mid-October due to the expectation of more than adequate total supply.

The recent US WASDE report brought no joy for global producers. It showed lower wheat production in Argentina and Australia, with increases in Russia, EU and Ukraine. On maize, while US and global production were decreased, so too was demand. The feeling at the moment is that global grain markets are well supplied, regardless of a drop in maize production. Markets are now focusing on 2020 production. Planting difficulties across parts of Europe are impacting on physical prices, which remain stronger than futures and are carrying a firmer tone.

Native prices are similar to last week, with wheat at €185 and barley at €175/t. But May prices are up slightly at €190/t and barley at €185 to €186/t. At the moment, November 2020 prices are the same as spot. Earlier this week Glanbia offered members €148/t and €138/t for green wheat and barley respectively for September.