Grain prices strengthen further on weather worries

Ex-farm grain prices gained another £3/t-plus in the week to Wednesday, to average £114.50/t spot in thin trade.

There is still a £10/t price gap between the highest and lowest priced regions.

However the past week has seen the wheat-barley price gap widen to about £10/t, with spot feed barley averaging just over £104/t.

See also: Grain prices rise on back of dry weather and political uncertainty

Farmers Weekly’s ex-farm prices show old crop and new crop values have moved very close, with just £1-£2/t difference in most areas.

After gaining about £7/t in the first week of June, new crop lost a bit of ground midweek to put the London futures November 2015 feed contract at £128/t delivered. This compares with November 2016 at £136.50/t.

Wheat prices were buoyed by a weaker pound and weather worries – parts of eastern Europe and Russia are dry.

Concerns about the impact of heavy rain on the US wheat crop have been a big driver of the rise in wheat values, however the latest USDA crop progress report shows that the overall condition of the US winter wheat crop is better than at this point last year and on par with the previous five-year average, said AHDB Cereals and Oilseeds.

The EU Commission estimates the EU soft wheat crop at 141.5m tonnes, with its latest Mars crop monitoring report revising average yields up slightly to 5.93t/ha.

Rapeseed futures have also seen further sharp movements on frost damage fears for the Canadian crop.

UK ex-farm rapeseed prices gained about £5/t in the week to Wednesday to average £277/t, about £27-£28/t above new crop values.

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