By FWi staff
WORLD soft wheat prices have fallen back below £79/ tonne, market analysts revealed yesterday.
Figures released by the London-based Home Grown Cereals Authority show world market returns have dropped by about £18/ tonne since mid-September last year.
HGCA analysts blamed the fall on an expected 20 million-tonne increase in world wheat stocks.
Wheat stocks in the USA are forecast to rise by 5m tonnes. And estimates for the ongoing wheat harvests in Argentina and Australia have been increased over the past few weeks.
In the UK, the average ex-farm feed wheat price for the last six months of 1997 was £21/ tonne below that for 1996. The lower price reflects the difficulties UK cereal farmers face due to the stronger Pound and the large harvest, the HGCA reported.
As a result, UK feed wheat prices this year are expected to remain close to the EU cereal support price, currently £85.01/ tonne.