Grain market recovery continues

The grain price recovery continued on Thursday (17 March 2011) with London’s March and May 2011 feed wheat futures contracts rising by a massive £13.70/t above the previous day’s levels.

This put the March delivery contract, which expires next week on 23 March, at £189.05/t and May at £191.70/t delivered.

These prices are roughly £20/t off the top of the market. New crop was also well up, with November 2011 feed wheat closing at £158.20/t.

Falls earlier in the week had brought some buyers back into the market, said traders and the latest export figures showing that the UK shipped a further 200,000t of wheat in January confirmed the tight end of season forecasts.

However, with so much political and economic uncertainty in all markets, the only guarantee at present is of continued high levels of volatility.