Grain contract prices jump due to drought

CONTRACT prices for this year’s grain reached new highs in Europe recently as concerns grew over crop prospects due to unusually warm and dry spring weather.

Global grain shortages have left markets very sensitive to any bad news for crop prospects, and unusual spring conditions in large areas of Europe led to speculators taking sizeable positions in both the French and British wheat futures markets.

In north America, late spring frost caused concerns that yields will be reduced.