Grain markets have bounced back following last week’s crash, with London wheat futures losing and regaining £24/t in a fortnight.
Old crop wheat had recovered to about £190/t ex-farm for spot movement as Farmers Weekly went to press. New crop values were pegged at about £150/t for November – still £30 below their peak just a few weeks ago. “That is a big fall and there is no more wheat in the world than there was,” says David Sheppard, managing director at Gleadell Agriculture.
“We are emerging from winter and there are a few weather problems in Europe, Canada and the American Midwest. Russia needs perfect conditions until harvest to rebuild stocks, and there are also reports of big purchases of American maize by China – with the maize market very tight. The price risk is still on the upside.”
Oilseed rape values have also rebounded, to about £380/t for spot movement and £350/t for November. “We need everywhere to have good crops – the EU is expecting a small drop in production against a backdrop of growing demand,” says Gleadell’s Jonathan Lane. “We need Ukraine and Australia to have large crops to make the necessary imports available to us.”