The past few weeks have seen a significant slide in grain prices which have dropped back by around €70/t from the peak of the market.

Prices for grains and feedstuffs increased massively following the invasion of Ukraine and the suspension of most grain and oilseed exports from there. However, over the past few weeks, the price hikes created by the war are almost all gone following significant weekly price drops.

In the EU, MATIF prices for December contracts peaked just after mid-May when the Friday closing price hit a high of €414/t. This same contract dropped to €322/t on Tuesday of this week. This was €306.75/t immediately after the Russian invasion of Ukraine on 24 February.

The price weakening has happened across all markets and crop types.

December maize prices on the Chicago futures are now lower than they were at the time of the invasion. This is partly due to markets but currency is also a factor, with the strong dollar pressurising internal prices to remain competitive in export markets. However, the strong dollar adds to the cost of US imports here.

The past few weeks have seen both a realignment of native grain prices with imported maize.

Forward prices

Recent forward price offers for harvest reflect the need for it to be competitive with maize rather than following futures prices which had moved much higher.

Native dry price offers for harvest are now around €335/t to €340/t for wheat and €325/t to €330/t for barley. These prices were above €405/t and €390/t, respectively, at peak.

Imported maize into Ireland for next November has fallen back from a high of around €385/t in mid-May to under €325/t this week. This is providing some relief for livestock feeders but it is happening at a time of year when harvest prices are being formulated for grain producers.

Read more in Grain Trends.