By FWi staff
STERLINGS surge to a nine-year-high against the Deutschmark has promptly killed off any remaining hope of an increase in this seasons wheat price, say grain traders.
The Pound climbed to DM3.05 in the wake of last weeks budget and it has remained at similar levels ever since. At mid-day today, Sterling was worth DM3.06.
As traders take a cautious approach, wheat futures are coming under increasing pressure. Large crop expectations for the forthcoming harvest are also having a downward effect on prices.
An increasing number of traders are already urging farmers to take the best price they can now, rather than wait for later.
Futures have now eased by about £7 since the beginning of the month. LIFFE contracts for July are currently trading at £77.25/ tonne and prospects for anything better are starting to look grim.