European wheat futures rallied further this week, striking new record-high levels as bullish drivers continue to influence markets. Adverse wet weather across east and southeast Australia has proved damaging for wheat crops with reports of sprouted grains and quality wheat consigned to the feed bin. The world’s major milling wheat importers were hoping that the arrival of a predicted bumper crop in Australia would ease the tight supply of quality wheat and cap record prices but that may no longer be the case.

In New South Wales, where harvest was expected to achieve up to 11 million tonnes, reports suggest that between 50-75% of the crop could be damaged. Better-than-expected yields were reported in Western Australia but managing lower-than-usual proteins is a further complication for exporters to manage.

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