Taken from HGCA weekly MI Bulletin|
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Weaker Sterling benefits UK prices HGCA
Tuesday, 05 October, 1999
Delivered prices for feed wheat were generally 50p-£1 higher last week, responding to weaker Sterling. Milling wheat and barley prices moved down, responding to slack demand.
Sterling fell by nearly 8pfg from Monday through to Friday. Starting the week at DM3.09, the Pound ended Friday being worth the equivalent of around
Feed wheat prices only saw modest gains as traders noted that EU demand was slow. The small Sterling response does, however, make our grain more competitive, they noted.
Milling wheat prices fell. Millers continue to buy only nearby requirements in general. Group 2 premiums are reported to be about £5 below Group 1, with a diverse market developing for other qualities.
Barley prices also fell sharply as non-EU demand, which had recently supported prices, was reported to have slowed.
The export markets were currency-lead, and some activity was reported at the beginning of the week in response to the weakening of sterling, but harvest pressure from the incoming maize crop in southern Europe was reported to be pressurising UK feed wheat prices on the Continent.
Traders reported that a few sales of export milling wheat varieties had been made, at a premium over feed, of £3.50/t.
The barley export market was very quiet at the end of the week, and with little trading activity, market quotes were relatively diverse.
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