Harvest progress puts pressure on grain prices

Grain markets have fallen again over the past week, amid improved weather conditions in the US and good harvest progress in France.

London wheat futures fell £2.75/t in the week to Tuesday to £123.50/t for November, with cheap Russian grain and the strong pound adding to the downward pressure. As a result, ex-farm prices fell by about £2/t to £108-£116/t for harvest movement, depending on location. Milling wheat prices lost between £3/t and £6/t on the week, to £129-£137/t.

Concerns about the EU maize crop had subsided slightly, but heat stress was forecast to build, said an AHDB report. “With the prospect of reduced feed grain supplies in the EU this season, maize prices have risen relative to wheat, which should support feed wheat demand.”

A report by Bidwells added: “If maize production prospects in the US and Europe deteriorate and prices keep rising, this could present export opportunities for UK feed wheat.”

Oilseed rape prices fell by as much as £5/t on the week to between £248/t and £254/t depending on location, weighed down by the strong pound and large soya bean supplies, said the AHDB report.

“However, tightness in global rapeseed production is helping to offset some of the bearishness.”