Firmer feed wheat price after USDA figures

UK wheat prices firmed slightly today (Monday 14 September), to between £98/t and £105/t ex farm.

A US Department of Agriculture report late on Friday surprised the trade by reducing the department’s estimate for maize yields for the second month running.  

This firmed maize prices and wheat benefited slightly in turn.  

Weaker sterling also had an influence.

With November feed wheat worth up to £8/t more than spot in some areas, farmers were selling only when forced to, said Openfield head of grain marketing Glenn Mason.

See also: How to manage tax when your farm income has dropped

The London November wheat futures contract moved above £113/t by mid-afternoon on Monday for the first time since the start of the month.

The main points form the USDA report included:

• Global end of season wheat stocks forecast at 226.56m tonnes – a record
• World wheat production in 2015-16 is predicted to rise to 731.6m tonnes, 6m tonnes higher than last season and another record. Bigger crops in the EU, Russia and Ukraine were the main reasons for an increase from last month’s forecasts
• More wheat likely to be used this season but balanced by the higher stocks carried in
• US maize production forecasts reduced from 347.6m tonnes in August to 345.1m tonnes in September, on lower yields
• EU maize production forecast reduced to 58m tonnes (62.25m tonnes forecast last month)
• Lower global soya bean production and stocks forecast, though EU rapeseed production forecasts were increased.