Good weather is putting pressure on wheat prices in the European Union despite uncertainty about the coming harvest and stocks, German trading house Toepfer said.
Prices for nearby positions and new crop had fallen, although the recent fall in freight rates had reduced the EU's advantage in shipping costs against competitors. French wheat remained competitive on world export markets.
"As before it must not be forgotten that the harvest in the EU can still be affected by the weather and uncertainty remains about the actual size of the harvest," Toepfer said in a market report.
"Development of maize plantings for this season's harvest is up to now with the exception of Italy very good." Availability of cheap rye from EU intervention stocks and reduced exports meant trading in feed barley was thin.
Price falls for non-grain animal feeds had also depressed barley demand. However, barley prices had almost fallen to the intervention level, so another drop was unlikely, Toepfer added.
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