Grain prices continue to break records with London wheat futures hitting £200/t delivered for July 2011 on Tuesday.
The previous highest recorded price on the London wheat futures was £198.50/t, set in February 2008 for July delivery in the same year. Nearby prices – for the nearest futures delivery month – are also nudging record levels, with January 2011 futures closing on Monday at £192/t delivered. The record for the nearby contract was also set on 25 February 2008 at £192.50/t delivered.
Growers were reluctant sellers in early December but with new crop recently hitting new contract highs almost every day, they had been more active, said a Frontier wheat trader. Ex farm prices for July next year are in a range between £194 and £197/t depending on region.
Meanwhile the big challenge for the grain trade is the logistics of keeping grain moving to feed mills and other consumers at such a busy time. The weather has made movement more complicated and much more costly.
Mills will be shutting down for only two days as usual over Christmas, but will be operating on longer hours to try and make up for the impact of the bad weather. Export loading is continuing up to the holidays, but at a slower rate than earlier in the year.
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