Changeable weather has exacerbated the grain market volatility over the past week, with old and new crop values dropping sharply after last week’s gains.
Spot London wheat futures fell by almost £2/t on the week to £167.50/t, with January 2015 futures down by more than £5 to £157.85 and November 2015 futures losing £10/t to close at £152/t on Tuesday (22 April).
“Prices are under pressure from beneficial rains in America and Ukraine,” said a report by analyst Agritel. “However, conditions are still particularly dry in Western Europe and Southern Russia.”
Drier weather had allowed the soyabean harvest to restart in Argentina, but progress was well behind last year, said an HGCA report. “Heavy rainfall may have damaged the crop, but for the time being the Buenos Aires Grain Exchange is maintaining its estimate of 54mt (4.7mt higher than in 2012/13).”
Canola plantings in Canada were likely to be the second highest on record, which, combined with large carryover stocks due to export delays, could prove bearish for UK oilseed rape values, added Jonathan Lane at Gleadell Agriculture.
“By the time Canadian canola exports get back into full swing, combines could well be rolling in Europe – not good timing for UK markets.”