Grain market steady but weather news will move it

Ex-farm grain prices are steady, with new-crop feed wheat ranging from £156-£163/t for August across England and Wales.

The spread in Scotland and the Borders is £168-170/t ex-farm for September.

However, both dry and wet weather in different parts of the US corn belt are sending the grain market mixed messages.

Hot, dry weather has also put a question mark over whether Russia can achieve the 95m tonne grain harvest it has been forecasting, but the country is leaving its grain export forecast at 20m tonnes.

A weaker US dollar is pushing down euro-based grain values, while speculation over the size of China’s grain and oilseed import requirements is creating further uncertainty.

As Farmers Weekly went to press, the London November 2013 feed wheat futures contract was at £168.10/t and November 2014 at £160/t.

World total cereal production is forecast to increase to record levels in 2013, according to estimates from the Food and Agriculture Organisation of the United Nations (FAO).

It puts world wheat output in 2013 at 704m tonnes, an increase of 6.8%, which more than recoups the previous year’s reduction and represents the highest level in history.

World coarse grains production in 2013 is forecast by FAO at about 1,275m tonnes, up sharply (9.7%) from 2012.

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