Feed and milling wheat prices rise

Feed wheat prices increased by £5.30/t in the week to 30 September, to average £103.50 ex-farm for spot movement.

Markets had rallied due to dry conditions causing delays to drilling in the Black Sea region, while Defra cut its 2013-14 and 2014-15 UK ending stock levels due to calculation adjustments. Milling wheat prices also improved, rising by £5.90/t to average £121.50/t.

The UK was expected to export 1.7m tonnes of wheat in the 2015-16 season, and although total global imports were predicted to fall by 3m tonnes to 156m tonnes there should be greater opportunities for UK sales into the EU, said a report by AHDB Cereals and Oilseeds.

A tax on Russian wheat exports was likely to curb the country’s production and exports, but prospects for the 2015-16 crop looked stable. Should the tax remain in place, it could provide export opportunities for EU wheat crops.

Oilseed rape prices also increased over the past week, up £7.70/t to average £253.20/t ex-farm for spot movement. The El Nino weather pattern continued to cause dry conditions in Malaysia and Indonesia, boosting palm oil prices. “The price movement of palm oil is important as it influences other vegetable oils, such as rapeseed oil,” said the report.