Grain prices have slumped by £10/t over the past week, with beneficial rain easing concerns over production in America and Argentina.
Spot feed wheat markets dropped to about £198/t ex-farm as Farmers Weekly went to press, with milling wheat at about £219. Feed barley eased by £5, to £183/t, with oilseed rape down by £6 on the week, to about £380/t. New crop values were also weaker, with London feed wheat futures dropping by almost £8/t on the week, to just under £182/t for November – equivalent to around £178/t ex-farm, depending on location.
The USDA’s latest report left global wheat ending stocks virtually unchanged, while maize stocks increased by 2m tonnes, mainly due to higher production in Brazil. Soya bean stocks were revised slightly higher as well. “Optimism continues that the South American soya bean crop will be a record one, with several private analysts increasing their estimates for Brazil,” said a report by HGCA.
Meanwhile, Defra’s usage data for December revealed the extent of imported wheat use, at 26.5% of the market compared to 11% in July and the highest level since 1993/94. “It is anticipated that millers’ imported usage will continue to increase into January,” said the HGCA.