By FWi staff
UK grain prices are down again this week and movement continues to be slow reported traders today (Tuesday). However, traders have reported more wheat leaving farms recently when producers took advantage of the higher spot values seen last week.
Futures prices were down as much as £2.50/t towards the end of last week as more wheat came on to the market up north according to trader Gary Sharkey of BDR Agriculture in East Anglia.
“Consumers have now covered the majority of their wheat needs for September, which has brought the price back down,” said Mr Sharkey.
Milling wheat prices are currently £83/t off farm for spot movement, and feed wheat £65-£68/t. With Chicago closing at a 21-year low yesterday and Hungarian feed wheat selling for $51/t, Mr Sharkey sees little hope of prices rising significantly in the near future.
The Danish crop is expected to be feed wheat now as harvesting has been postponed due to bad weather, said Gary Hutchinson of Dalgety, Newmarket, Suffolk. “However, being the cheapest supplier in Europe, they are likely to be strong export competition for the UK,” he said.
Exports remain slow, although there was some business with Spain and Italy last week, said Angela Gibson of Glencore Grain at Thame, Oxfordshire: “UK prices are cheaper than the French which is where the recent business has come from.” There are also opportunities to export to Bangladesh and other third world countries at present.