Wheat and corn futures continued to drive higher earlier this week, setting new contract highs. US markets reached their highest level for eight years and Chicago Board of Trade (CBOT) corn futures pushed above $7/bu – a level double their contract low. New crop London wheat futures at their highest had risen over this month by an impressive £35/t. Higher European futures markets reflected concerns for both winter and spring crops following the prolonged period of dry weather and, in places, record low April temperatures impacting on most of northern Europe. However, with strong speculative buying, futures markets had become technically overbought and were overdue a correction. Forecasts for much needed rain seemed to be the trigger for a wave of profit-taking which drove markets sharply lower during the second half of the week. Upbeat wheat production prospects for Romania were another negative element. Romania’s enthusiasm to sell new crop wheat was highlighted in the tender held by Egypt this week. 

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