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Sterling dominates UK grain prices, reports HGCA

- 26 October 1999
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  • Delivered cereal prices ended last week between £1 and £2/t lower, cancelling out the gains made over the previous week.
  • Sterling continued to dominate cereal price direction, in lieu of any stronger news. Last week the Pound climbed to a yearly high against the Dollar at $1.67 and firmed 2¢ against the Euro, ending at 1.55 on Friday.
  • The surge in farmer selling seen a fortnight ago, brought about by a £2 rise in grain prices, slowed down again as prices fell. Producers are reportedly keeping a close eye on cereal price movements though, possibly looking to sell on any rally.
  • The key £70/t ex-farm price level can now only be achieved for November/December movement, depending on the region.
  • Wheat export prices for the nearby positions remained relatively firm, despite the strengthening of Sterling, supported by steady interest from compounders in the Netherlands and Ireland. UK feed wheat is currently less competitive in most southern European countries.
  • Traders also reported that the markets were given some support by the Ministrys supply/demand estimates published mid-week.
  • The nominal premium for Class 2 milling wheat varieties at coaster ports remains at £3.50/t, although this market, along with the barley market, was reported very quiet.

    HGCA
    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 020 7520 3972


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