Grain prices rise on back of dry weather and political uncertainty

Grain and oilseed rape prices have risen sharply this week amid political turmoil in Argentina and dry weather in Canada.

Feed wheat prices rose by £5.10/t in the week to Wednesday, to an average of £111.20/t ex-farm, with milling wheat up by £5.40 to £130.50/t.

New crop values also improved, with London wheat futures up by £4/t in the week to Tuesday, closing at £124.75 for November.

Farm selling remained slow as producers waited in hope of better values, said traders.

See also: More market prices and trends

However, serious flooding in the US had yet to have much impact on global grain prices, although frost and drought in Canada was supporting oilseed rape markets.

Domestic rapeseed prices jumped by £12/t on the week, to an ex-farm average of £272.60/t for spot movement – the first time it had exceeded last year’s values all season.

“The global market has found support this week as the Argentine Soyoil Workers Federation went on strike, disrupting deliveries into the major export hub of Rosario,” said a report by Bidwells.

Further strike action was possible, but likely to be short-lived, and in the longer term there looked to be oversupply of soya with growing stockpiles, it added.

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