After reaching a contract high last week, grain prices slipped slightly on news of the possibility of peace negotiations between Russia and Ukraine.
However, Nov-26 UK feed wheat futures currently sit where they were at the start of the month at £213.75/t. AHDB analysts say the market will be closely watching to see if negotiations result in an increase in export levels through the Black Sea.
Lativa and Lithiania may restrict or ban Russian exports from their ports on the Black Sea, with government meetings scheduled this week.
The AHDB says analysts will also be keeping a close eye on maize market, this and Black Sea exports being key to market sentiment.
Maize harvesting has begun in France, where crops are in very poor condition after this summer’s drought and heatwaves. FranceAgriMer reported crops are six days ahead of last year’s early development, with 3% of French maize cut by 31 August. There is also some concern on the condition of US crops.
Oilseeds outlook
The oilseeds complex has been boosted further after renewed strikes in the Middle East pushed crude oil prices higher. There was also support for prices from ongoing concerns about the impact of hot weather on US soya bean crops, and stronger US export sales. Paris Nov 26 oilseed futures have climbed to €554.50/t.
The Chinese President is due to visit Washington this week, and the market expects trade to be one of the topics discussed.
El Niño is a growing concern, with mounting evidence of a strong event that may last into 2027. It could have a significant impact on Asian oil production and the wider region.
