Grain Prices Surge Amid Global Production Challenges
Global grain prices continue to rise amid production challenges in key regions. In the latest trading round, UK wheat prices surged by £2/t, further solidifying the upward trend observed over recent weeks.
The UK November 2026 contract wheat price closed at £205/t on Friday, August 23. According to the Agricultural and Horticultural Development Board (AHDB), this is approximately £1/t higher than the December 2026 Paris milling wheat futures' contract price on the same day.
Grain futures prices rose last week following the Pro Farmer crop tour in the US, which reported poorer-than-expected potential for maize crops. As a result, December 26 Chicago maize futures gained 5.2% over the week and reached a new contract high.
The Pro Farmer forecast indicates that the US maize crop will reach 389.8Mt, down 10% from 2025's record, with yields also down 7%. This is a bigger fall than the United States Department of Agriculture (USDA) predicts, which forecasts a 6% year-on-year fall in production to 406.8Mt.
The International Grains Council (IGC) has cut its forecast for world wheat production in 2026/27 by 4.3Mt to 816.7Mt. This reduction partly reflects poorer prospects in Europe, including the UK, due to sustained heat this summer. The global crop is now forecast at 27.5Mt below last season.