International grain prices weakened further last week, as the fallout continued from the recent US report, plus high output expectation from other parts of the world. There was a wee bit of upside on wheat due to some crop condition issues in the US, but it now looks like the Ukraine has even more wheat to export.

US wheat prices continue to fall and they may need to fall further to be competitive internationally. UK exports are very competitive currently, due to currency devaluation and lower sterling prices due to pressure to export grain ahead of Brexit. This is being felt locally, with UK barley currently being offered at €166 to €167/t ex-port.

However, there is now a feeling in the market here that barley is much stronger than these prices suggest. Some see feed barley going well above €170/t dry when harvest pressure subsides.

MATIF oilseed rape prices increased further last week to close on Tuesday at €380/t and it has risen again since then. This is due to the tightness in EU supply, but it may not translate into physical prices here due to lack of domestic demand.

Native spot prices remain broadly similar to last week, with wheat around €175/t and barley between €160 and €165/t. November wheat has weakened to €173/t, but May ’20 is now put at €185/t. November barley is put at €170/t, but May price is now up to €182/t.