UK WHEAT prices eased over the week (w/e Feb 11) on the news from Brussels on export refunds.
Typical ex-farm prices range from £60-£63/t depending on region.
This year‘s UK exportable surplus is not directly affected by export refunds, as it is mainly feed wheat and not in demand by Third countries at current prices.
But the news pressured the French market, which, coupled with a slightly stronger pound, is starting to cap the UK market.
“We have a large quantity of feed wheat to move and anything that can go to Spain cheaper affects us,” said David Doyle, wheat export manager at Grainfarmers.
“The French market is now closer to ours, and we have a constant battle with Black Sea grain.”
Nevertheless, Mr Doyle expected the UK to have exported about 2m tonnes of its exportable surplus by the end of January.
“That‘s going in the right direction,” he said.
If the pace were to be maintained this month, that could help prices, though the market would remain very sensitive to big quantities of grain offered into Spain from competing regions, he added.