Grain prices have dropped sharply following last week’s rally, with both old and new crop markets weakening.

London wheat futures fell by £4.10/t on the week, to close at £115.25/t for July on Tuesday (16 June), with November futures down by £7.25/t to £122.25/t.

Grain traders attributed the blip to weather concerns and funds covering short positions, which had now been dealt with.

However, there remained a number of weather concerns around the globe, with storms expected in Texas, and dry weather in Canada, Eastern Europe, and Australia.

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So far crops remained relatively undamaged, but continued dry weather would affect yields, said a report by analyst Agritel.

“Monthly statements published by FranceAgrimer were bringing a positive tone,” it added.

It cut the French soft wheat surplus by 600,000t to 2.98m tonnes due to decent export pace to Asia, with the barley surplus down by 330,000t to 960,000t following an increase in exports to China.

Corn stocks fell by 440,000t but remained heavy at 3.36m tonnes.

OSR prices fell by about £2/t on the week, to about £248/t ex-farm for harvest movement.

Old crop markets were very thin, at about £280/t.