Feed wheat prices steady despite lower global markets
© Tim Scrivener Spot feed wheat prices remained relatively steady in the week to 6 July, falling £0.20/t to average £108.70/t ex-farm.
This was despite lower global markets, following the latest US Department of Agriculture (USDA) report, which increased estimated US maize plantings to 38.1m ha – the third highest on record – and wheat plantings to 20.6m ha.
“Both came above estimates made in March,” said an AHDB report.
The EU wheat market also traded lower, despite analyst Agritel reducing its French wheat crop estimate to 37.23m tonnes – 9.2% down on 2015 due to lower yields.
UK grain prices were supported by a weaker pound, and spot milling wheat premiums increased further in the week to 6 July, rising £5.90/t to average £24.40/t over feed.
This was due to worries over crop quality and wet weather across Europe and the Black Sea, the report said.
These comparatively low prices meant the UK could potentially export more wheat to Morocco in 2016-17, it added.
“Morocco’s grain production for 2016-17 was lowered again in the USDA report. Wheat production is estimated at 2.8m tonnes, a decrease of 0.9m tonnes since the March estimate.”
This was nearly 68% lower then in 2015-16.
