The feed wheat market has been drifting after paying early premiums for specific qualities at the end of last week.

Spot ex-farm feed wheat prices varied between £146/t for new crop in Kent and £170/t for old crop in Scotland today (Wednesday), with new crop barley trading at similar levels to new crop wheat.

The uncertain economic outlook continues to affect all grain markets, alternating with crop and weather reports to push and pull prices in all directions from day to day. The London November feed wheat futures contract has moved both ways between £160/t and £165/t since mid July.

European wheat has been under significant price pressure from heated Black Sea export competition, although this region has seen prices fall recently to below levels where state intervention buying should kick in.

In the USA, prices are reacting to heat and drought stress on the maize crop and a poorer condition score for the US wheat crop from the US Department of Agriculture early this week.

With the EU crop in many areas having been saved by late rains, the latest International Grains Council report raised its forecast for the UK wheat crop to 14.5m tonnes and Strategie Grains increased its estimate for the EU soft wheat harvest by 4.6m tonnes to 130.2m tonnes.

However, milling quality in continental Europe is still in the balance as rain has hampered harvest in many EU countries and growers are reluctant to sell until both yield and quality are more certain.

Maize also continues to influence wheat markets, with tightness in the maize market translating into a tight feed grain market, said the HGCA.

Russia has cut 25% of its total wheat, barley and oilseed rape area, according to market analyst Agritel. Wheat yields are more than 30% higher than last year’s disastrous crop and 39% better for barley.