Grain prices drop after good global weather

Grain prices have plummeted over the past week, with decent weather benefiting crops across the globe.

London wheat futures ended the week to Tuesday down by almost £12/t for July, to the equivalent of £169/t ex-farm. New crop values fell by almost £7/t, to around £162/t ex-farm for harvest movement.

Traders expected the US Department of Agriculture’s next report to be bearish, confirming expectations of record global wheat and maize crops. Conditions in Australia, America, The Ukraine, Canada, and Europe were all currently favourable – although there was still plenty of scope for adverse weather before harvest.

Rapeseed values followed the markets down, with Paris futures losing €11/t (£9.35) in the week to Tuesday, putting UK ex-farm values at about £369/t and £332/t for spot and harvest movement, respectively.

But bean trade was starting to pick up, with interest in new crop feed beans, priced about £50/t over feed wheat, said a report by PGRO and BEPA. “The trade remains optimistic,” it said. “The area sown and the likely yield means availability should be good and, though the premiums are lower than they were in 2012, they still represent a good price for growers.” Human consumption beans were pegged at £35/t above feed beans.

Market report