LOCAL and interational grain markets maintained the softer tone last week.
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The weaker trend in global markets continued as markets factor in ample supplies of wheat and feed grains.
US soft red winter wheat declined by $10 a tonne last week and has now fallen by 10 per cent in the past four weeks.
The US Department of Agriculture (USDA) released its June world grain supply and demand forecast last week which confirmed the outlook for ample global grain supplies.
USDA raised its forecast of 2014-15 global wheat production by 4.5 million tonnes to 701.6 million tonnes.
If achieved this would be only the second time that global wheat production has topped the 700 million tonne mark, behind last year's 714 million tonne crop.
Softer demand for wheat this year is also playing its part in falling world wheat prices.
Aggressive wheat purchases from China and Brazil were pivotal in supporting global wheat prices last year but the situation is very different this year.
China is currently harvesting what is expected to be a record large crop and quality is much better than last year which is expected to see wheat imports sharply lower than last year.
Wheat production in Brazil is forecast to jump by a third which is expected to quell their import demand as well.
The favourable outlook has also seen export competition intensify.
Egypt, the largest wheat importer in the world, bought Black Sea wheat for $248/t (free on board) last week which is equal to their cheapest sales price last year.
The bearish tone also extends into the world feed grain markets with corn and feed barley also in plentiful supply.
Ideal weather in the US Midwest has its corn crop off to a great start and on track for a record large harvest.
Global corn supplies are also abundant with larger crops in Brazil and Ukraine according to the USDA.
Weakness in global grain markets and some welcome rain across northern NSW last week resulted in another down week for local grain markets.
Lloyd George is a grain analyst for Ag Scientia, Melbourne.