Grain markets fall on the back of good weather

Grain markets have drifted during the past week, with lack of selling interest and better global weather contributing to the bearish sentiment.

In the week to Tuesday, London wheat futures lost more than £6/t, putting spot feed wheat at about £192/t ex-farm, depending on location. New crop values also fell, to about £175/t for harvest movement.

“There is very little farmer selling; UK farmers are worried about how crops will come out of the winter,” said Peter Hall of Openfield. The HGCA’s planting survey for England and Wales estimated winter wheat plantings were 25% down on last year, with winter barley down 19% and rapeseed down 1%.

While domestic crops weren’t looking well, global production appeared more favourable due to better conditions in North and South America, Russia and Europe, said grain trader Simon Ingle.

“International buyers are trying to delay their buying until cheaper new crop supplies are available. The general feeling is that the weather is favourable towards big crops next harvest; we have to be careful not to only look outside our own back door.”

However, with ending stocks the lowest for 10-15 years, it would only take one weather concern to trigger another rally in prices, he added.

Read more

For more market reports see our Prices and Trends page.

market report