28 April 1995

Lift for wheat

CEREAL growers fortunate enough to have wheat still in their bins have benefited from another £2 to £3/t rise in the market in the past 10 days.

Trade fears of an end of season shortage, another green £ devaluation and an unexpectedly large award of export subsidies in Brussels late last week have all added fuel to the fire.

A small recovery in sterling prompted a slight weakening of the trade mid-week, but spot wheat was still fetching £117 to £118/t ex-farm. "We dont need any more export orders and prices wont fall out of bed now," predicted Cargill grain trader Alastair Riach.

New crop prospects are also rosy, with November wheat trading this week at £105/t ex-farm, aided by weak sterling and news of drought in Spain and Portugal. In some areas, about 15% of the 1995 harvest is believed to have been sold forward. &#42