Grain price rally continues to new highs
Grain prices continue their record-breaking streak with London May 2013 feed wheat futures contract reaching £225/t today.
With almost every new crop figure predicting less grain across the world for the current season, the trade reflects opinion on a tightening supply. Some of the biggest gains have been seen in the 2013 crop as drilling is further delayed both here and in France.
Russia has confirmed a total grain harvest of 71.7m tonnes against 94.2m tonnes in 2011, while China’s wheat harvest is estimated by the US Department of Agriculture at 10m tonnes lower than the 108m tonnes that the Chinese Government predicts.
Rain in Australia, while relieving drought, may have come too late to rescue yields and is giving rise to quality concerns.
Alongside the challenges of marketing the current season’s crops, dry conditions in the south of the US and the poor conditions for establishment of European crops are causing concern.
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