Grain Trends: steady markets as production estimated up

Grain prices saw a lift last week, but wheat tracked back down this week and, overall, left prices relatively steady compared with recent weeks.

As an example, the Matif wheat price for December hit a high on 19 March of €236/t, but fell back to €228.25/t on Tuesday 25 March. On Wednesday afternoon, that price was at €229/t.

Markets continue to look at weather and, this week, the talks between the USA, Russia and Ukraine. The pausing of attacks at sea may affect markets.

The International Grain Council is forecasting an increase in grain production for this season and next. An increase in wheat production in Australia is a big factor in this.

All eyes will be on markets on 2 April when US tariffs may be implemented on goods from importing countries.

European report

The European Commission released its crop monitoring in Europe report on Monday. It stated that most winter crops are “in fairly good condition” and that there are fewer and smaller areas affected by unfavourable weather conditions compared to last year.

Added to this, most places have had favourable weather for spring planting.

Some countries such as Romania and Hungary are affected by dry weather and this has halted early crop development.

Some German cereals and rapeseed crops are also in need of water, while there was reported to be excess water in parts of Portugal and Spain.

Parts of northern France were waterlogged at the beginning of the year, hitting root systems, the report said.

Spring barley planting is reported to be nearing completion in the north of France despite those wet conditions and planting is complete in the south of the country, where crops are reported to be in good condition.

Oilseed rape

Oilseed rape prices are more positive this week. On Friday, the November price for French oilseed rape closed at €475/t, up €15/t on the week previous. On Wednesday afternoon, it was up again to €481.50/t.

Native prices

At home, spot barley is reported to be trading up to €235/t, while spot wheat is around €240/t to €245/t.

The spot wheat price is trading about €20/t ahead of where it was this time last year.

November prices are reported to be about €5/t behind current spot prices. Maize into the country remains steady at €245/t.

This week is the last week to take up the fixed price offer from Boortmalt. Suppliers can fix the price of up to 40% of their contract at €240/t which is not subject to the €10/t drying charge.