Grain steadies after weeks of falling prices
Grain prices have steadied in a quiet UK market with increased buying interest elsewhere halting the run of price falls.
Late Friday (5 July) saw London November feed wheat futures prices at £166.75/t delivered and November 2104 at £161/t delivered.
The latest International Grains Council (IGC) report this week forecast only a very slight rise in world wheat production this season while China, Egypt and Tunisia have been buying wheat.
There are both pushes and pulls in the market – Russian grain output is expected to rise by about a third this harvest compared with last year, with the Ukraine increasing production by an even higher margin. On the other hand the US maize crop is at a critical stage and the weather there is mixed, setting the scene for further volatility.
The European Commission’s latest forecast is for the EU’s soft wheat crop to rise by 3.3% on last year and barley by 7%, while maize is to rise by 17%, with new member state Croatia contributing up to 2m tonnes to of this.
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