There was nothing to generate any significant upward price movement in the past week and Paris and Chicago wheat futures slipped once again. A recent FAO forecast put the 2017/18 crop equal to last year’s record output level and this has certainly not helped price sentiment.
The situation in the EU is not helped by the potential for large exports from Russia and Ukraine, which are making EU exports more challenging. And the strong euro is likely to hinder exports from euro-zone countries.
EU rape futures fell last week following the reduction in tariffs on Argentinian biodiesel imports. It is feared that this could reduce the demand for rape for processing and thus impact on price. But on the flip side, it appears that Canadian canola stocks are unexpectedly low, so 2017 harvest output could still impact. Physical prices appear to be holding around €380/t.
Native prices are again largely nominal, as there is little physical selling. But the mood appears to be slightly stronger as harvest-related selling eases. However, there is still a considerable price gap between buyers and sellers.
Physical prices remain very variable, with dry prices from now to the end of the year in the €170 to €174/t bracket for wheat and €160 to €164/t for barley. Imported maize price is higher though in response to the increased EU import tariff. AHDB figures put the average ex-farm UK feed wheat price at £134/t last week, down fractionally, and feed barley at £118.5, broadly similar to the previous week. They also put delivered feed wheat at £138/t to East Anglia and £144/t to Yorkshire.
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