Grain prices dropped this week, having recovered slightly in the week previous.

The publication of the WASDE (World Agricultural Supply and Demand Estimates) report certainly didn’t add any bullish sentiments to the market. The EU’s large export increase describes in some way the competition in the market, while corn production and consumption are estimated up.

As corn production rises it will no doubt have some bearing on grain prices at home. As always there are numerous factors affecting prices and a large spring barley crop in Europe will not be the only thing weighing in on price.

WASDE report

The United States Department of Agriculture (USDA) WASDE report came out on Tuesday, February 11.

Global wheat supplies were “lowered fractionally”. World exports increased 1.8 million tonnes.

The EU’s wheat exports were raised by 1 million tonnes as prices are competitive at present. Exports from the US increased by 0.7 million tonnes. The country is expected to have its largest exports in three years.

Global course grain production for 2019/2020 has been estimated up 0.9 million tonnes. Both consumption and production have been estimated up. Global corn ending stocks were estimated down 1 million tonnes from last month.

Global oilseed production, exports and ending stocks are all raised.

Grain markets