FEED WHEAT values edged up this week (w/c Oct 11) as farmers concentrating on drilling and cultivations sold less grain.
Spot prices strengthened to just short of £60/t ex-farm on Wednesday, Oct 13, as UK exports began to look more competitive as the pound weakened against the euro.
Martin Parry, group sales director at Centaur Grain, said wheat values had been helped by merchants struggling to meet export obligations.
“The delivered market is worth about £65/t at the moment, but merchants are trading at a cost.
“We can probably maintain values between £58 and £60/t – farmers are happier to sell above £60/t than below it.”
Political and logistical problems had hampered Black Sea countries exporting into southern European markets, helping to create some spot demand for UK wheat.
Independent trader Robert Kerr said port prices at Southampton and Tilbury docks had risen on the back of export demand.
“A sub-£60/t price wasn‘t attracting many willing sellers. A rise in the port prices has brought ex-farm values very close to £60/t.”
But some milling wheat premiums narrowed this week, as further evidence of a north-south divide in supply emerged.
Mr Parry said the milling industry in the north was finding supply increasingly tight.
“Everything has to be hauled a greater distance, and since July, haulage rates have risen quite significantly.
“Milling wheat premiums can now be as low as £22/t in the south but still £30/t in the north.”
Oilseed rape values slipped from £134/t to around £128/t on Wed, Oct 13.
“Rape has fallen on the back of US soya and bean harvests,” said Mr Kerr. “Harvest is in full swing and the crop looks very big.”