Improving crop conditions and currency fluctuations have kept the pressure on grain markets after trading resumed following the Easter Bank Holiday
The latest AHDB Grain Market Report shows grain prices following Chicago wheat futures, which slipped due to improved US crop forecasts and the strengthening dollar. UK feed wheat futures (May-25) slipping to £163.90/t. The Nov-25 contract also lost over the week to £183.90/t.
Following a prolonged dry spell in the US wheat belt, rain arrived and has helped crops recover. However, the full extent of the recovery isn’t fully known as some areas experienced flooding.
Improving weather conditions have been seen over much of the continent, especially southern Europe. As a result, the latest European Commission MARS report was ‘cautiously positive’ and FranceAgriMer announced that 75% of the country’s wheat crop was in good or excellent condition by the middle of April, up from 64% a year earlier. It is also estimated that 39% of France’s maize crop was planted by 14th April, versus 15% a week earlier.
A cold spell for Northern Europe wasn’t as sharp or prolonged as expected, although AHDB analysts note getting data out of Russia can be problematic. Increased Russian exports have also pressured markets, although volumes are not at the levels of 2024.
Currency also helped pull rapeseed prices down. The Euro strengthened against dollar and as a result, May-25 Paris rapeseed futures slipped to €515.25/t, the Nov-25 contract fell to €474.00/t.
The advises growers to keep an eye on oilseed markets and the weather both sides of the Atlantic. Higher oil content crops are tracking oil markets more closely than bean-derived oils, which is likely to continue, although further political volatility is likely.
