WHEAT GROWERS lucky enough to have grain in the barn are grabbing some useful premiums as local buyers run short.

While dreadful weather is causing great concern over the quality of this year‘s harvest, some consumers are now short of wheat and are paying up to £5/t premium for spot movement in the north.

In addition, the pound has weakened by 2% against the euro since the start of August, helping to make UK wheat more attractive to European buyers.

Ukrainian prices have also risen as more of its harvest than expected will be of milling quality, leaving feed wheat exporters struggling to meet demand.

“That shortfall could potentially be filled by UK exports,” said Richard Whitlock, grain director at Banks Cargill.

Overall, wheat markets have improved by about £1/t over the past week (to Aug 18).

Ex-farm feed wheat is now worth about £60/t for as-available movement, although spot shorts mean that up to £65/t is on offer for guaranteed collection in some parts of the country.

Milling wheat premiums continue to widen as more wheat gets discounted to the feed bin and rain in Germany raises concerns over its quality as well.

A contract high of £20/t is now available in some parts of the country.

But German wheat has already traded into the east coast and Scotland, putting a cap on the market. “It may not be a bad thing to lock into that,” said Mr Whitlock.