Grain Prices Rebound on Crop Concerns and Harvest Progress

Grain prices have rebounded in recent days due to concerns about crop conditions and harvest progress. Despite initial hopes of improved Black Sea export flows, grain markets have seen a slight increase in value.

The UK feed wheat futures price has fallen slightly, but remains at £211.75/t, only a fraction behind its starting point for the previous week.

The Agricultural & Horticultural Development Board (AHDB) reports that Black Sea developments were a key source of volatility for grain markets last week. Traders balanced continued Russian and Ukrainian attacks against hopes that a Turkish-backed truce on commercial shipping could reduce disruption and improve export flows.

Support for the market came from concerns over the French maize crop, which has deteriorated further due to heat and drought. However, the AHDB notes that the impact of these conditions is largely priced into the market.