Forward grain price drops by up to €5/t
Forward prices on offer for wheat and barley have fallen by up to €5/t in the past fortnight. Harvest quotes for green wheat eased back to €160-164/t, while green barley quotes fell to €155-160/t.
Prices on offer for dried old crop wheat have remained around €232-233/t for the past week or so. New crop recovered a bit last week, from €197-198/t in the early part of the week, to €200/t by the weekend.
However, old crop barley prices are down, falling €5/t during last week to €220/t. New crop dried barley for October/November collection is trading €6/t below wheat, at €194/t.
Meanwhile, international traders are watching harvest forecasts closely.
Yield expectations in the Ukraine, Russia and Poland have increased as recent rains have improved the crop and alleviated drought concerns. The Russian government has increased its harvest forecast to 94 million tonnes, some six million tonnes more than the USDA had predicted.
The USDA's world outlook shows increased global maize output being offset by lower wheat output.
Global maize output is expected to increase by 9pc to 946 million tonnes during the 2012/13 season. This is mainly driven by higher production in the United States, where a new record of 376 million tonnes is expected.
In contrast to maize, global wheat output is expected to dip by around 2pc to 678 million tonnes during 2012/13. The majority of the fall is confined to the former Soviet Union.