Grain markets show volatility after MH17 crash

Grain markets reacted dramatically to the Malaysian plane crash in Ukraine, with futures prices rising by £3 to £4/t late on Thursday (17 July).

However in thin early trade this morning the London feed wheat contract lost £2.65/t to stand at £129.35/t for November by midday, with May 2015 at £135.50/t.

The gains on the London market followed a rise of more than £4/t on US wheat markets on the political tension created by the plane crash.

See also: Crop outlook and competition put pressure on barley

This see-sawing of prices is likely to continue for the next few weeks on any significant political news or tension as crop quality and yields are established.

Ex-farm price hardly had time to react to the upward move, although a gain of £2/t or so would have been available for those with the right timing, said Openfield wheat and barley trader Alec Tindal.

“The reaction was purely down to the plane scenario and it showed the nervousness of the market and where the shorts were,” he said. “It was wheat that rallied, not corn, and it was a bit of a knee-jerk reaction.”

Stormy weather is also putting a question over European crop quality and increasing the nervousness in the market.

Ex-farm feed barley within range of the ports was worth about £105/t and a little lower further inland, while feed wheat was £115-120/t as available on Friday (18 July).

Grain and oilseed futures market prices are updated every 15 minutes on Farmers Weekly’s home page.