Feed wheat futures values have topped £100 per tonne for the first time in over two years, according to latest reports.

Trading for May 2007 feed wheat futures reached £101.50/t on Thursday 5 October, up £2.50/t since trading closed last week

Home Grown Cereals Authority economist David Mathias said the last time prices were so high was more than two years ago.

“The last time prices topped £100/t was the beginning of April 2004,” he said. “French wheat also reached its two-and-a-half year high yesterday.”

Massive reductions in Australian and Argentinean crops have slashed world grain stocks, forcing wheat values up.

Drought in the southern hemisphere caused the Australian Wheat Board to cut crop estimates to 12-13m tonnes, around half the normal crop of 23-24m tonnes, while Argentina’s yield dropped 1.5m tonnes to 13m.

Concern over tightening global supplies, which the International Grains Council now estimates at 19m less than last year, has helped firm the UK market by £4-5, with traders quoting £83-85 ex-farm for spot feed wheat movement.

Milling premiums hovered between £10 and £17/t over feed values, but full specification Malacca and Hereward wheats could manage £100/t into the right destinations.

However traders have warned farmers not to wait for further rises in an ever more unpredictable market.

“There’s enormous volatility, with prices rising £4-£5/2 in very short periods of time,” said Jon Duffy of grain trader, Frontier.

“Underneath all this, world stocks are below 125, tonnes – that’s as low as I can remember.

“There will come a time when this market peaks, and it could drop away very sharply. We’re seeing prices that, six months ago, would have made farmers sell their entire crop.

“I would urge farmers not to sit and wait,” he said. “It’s a brave man who tries to wait for the top of this market.”