Global grain markets continue on a volatile trajectory in response to a range of uncertainties. Wheat futures continue to go down and up, but, in general, this market is supported on the back of milling wheat.

Wheat has a number of supporting factors mainly relating to dryness uncertainties around the Baltics. But nearby prices are being helped by issues with logistics.

Maize continues to take a pounding though, due to the lower demand for bioethanol production. This is partly fuelled by the low crude oil prices and the lack of competitiveness of bioethanol, plus the fact that fuel demand has been considerably reduced due to the COVID lockdown. The net effect is that there is much more maize looking for a market and prices continue to fall. And in that feed market demand is also lower as stock head out to grass and recent additional cover gets used up.

Physical prices have been more robust and stable though, as logistics influence availability and prices. But now lower demand is impacting.

Earlier this week, Glanbia offered €159/t for green wheat and €140/t for green barley for harvest. And on Wednesday it offered €192/t for dry wheat for November and €173/t for dry barley.

The recent fall-off in demand is affecting local prices, with €200 to €205 being talked about for wheat out to May and €170 to €175/t for barley. New-crop prices are around €190 to €192/t for wheat and €173 to €175/t for barley.