Markets were being affected by numerous factors this week from conflict in the Middle East to currency and crop reports.

On Tuesday evening, Matif wheat for December closed at €214/t, up from €211.50/t on Monday.

Maize was also up, while oilseed rape for November was at €483/t, up €4.25/t from the day before, probably moving upwards with the increase in oil prices.

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US wheat was down, while corn and soybeans were up. UK wheat was also up.

Conflict in the Middle East this week has seen oil prices increase and fertiliser prices look set to move up. However, the states involved are not grain-producing countries. Iran is a net importer of grain.

Currency and the cost of oil and freight are likely to be affecting grain markets and the transport of goods.

Much more important than grain prices is to remember that at the back of the factors influencing the markets are people being affected by war.

This week, Agritel reported: “The euro is dropping sharply against the dollar. The latter is regaining its role as a safe haven, while Europe sees its energy supply threatened.

“As a result, the euro/dollar exchange rate is returning to its lowest levels since 20 January, around 1.1680, providing additional support to European prices.”

MARS Bulletin

The European Commission’s crop monitoring report MARS Bulletin was released on Monday.

Winter crops across Europe were described as “broadly satisfactory”, but there are concerns about frost damage in parts of the north and east.

While the cold weather helped some crops, a lack of snow cover was reported to have likely caused damage in Finland, the Baltic countries, Poland and Ukraine. Rain has helped crops in France, southern Europe and the western Mediterranean.

The AHDB reported this week that FranceAgriMer showed the impact of the wettest February on average in records back to 1959.

Winter wheat and barley are mostly reported to be in good condition in France. However, the percentage of winter wheat rated good or excellent fell from 88% to 84% from 17 to 23 February.

Spring barley planting remained stalled at 32% complete. This is behind the five-year average.

Native prices

At home, prices remained similar to last week with barley and wheat reported at around €215 to €220/t. There continues to be a lack of demand for wheat.

Maize is up at €240/t. It has jumped recently, but summer prices are lower at about €225/t. These prices are dried unless otherwise stated.