New crop futures markets for wheat and oilseed rape set new contract highs again this morning as weather concerns continue to dominate the harvest outlook.
The London November feed wheat futures contract rose a further £7/t by 11am to £198/t, after an increase of £10.50/t had established a new contract high yesterday.
Europe’s Paris based MATIF rapeseed futures contract for November 2011 reached €467.50/t, up by €7/t by mid morning on Friday.
A medium-term weather forecast showing no prospect of significant rain in most English cropping regions added to the effect of a harvest forecast made on Thursday which put the French wheat crop 11.5% lower than last year.
Old crop, which had been falling, has today gained some ground on the back of the new crop rises.
Wheat crops in France, Spain and Italy are now reported to be at the yield forming stage of growth, which may be coming one to two weeks early, said HGCA.
“Showers over western Europe in the coming days will take the edge off drought stress however rainfall levels are not thought to be enough to give adequate soil moisture levels,” it said.
Further impact on yield formation could come from crops being too advanced in growth and attempting to form yield at a time when sunshine hours and radiation levels were at lower than optimum levels.