Grain prices have continued to slide over the past week, following a bearish USDA report confirming ample global supplies.
Spot feed wheat lost more than £1/t to average just under £98/t ex-farm on Wednesday, with Group 1 milling wheat dropping below £107/t. However, feed barley remained slightly better supported after the successful autumn export campaign, staying relatively unchanged at £94.50/t.
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New-crop feed wheat suffered a more marked decline, losing about £4/t on the week to average about £103/t ex-farm for harvest movement. Oilseed rape values were also under pressure, with spot markets down by more than £2/t to average £254.50/t.
“New-crop rapeseed prices could soon come under renewed pressure, despite holding relatively steady so far in 2016,” said Isobel Robinson at AHDB. “Paris rapeseed futures have fallen steadily over recent days, under pressure from global oilseed markets following improving conditions for soya bean crops in Argentina.”
So far, the weaker pound against the euro had helped offset the effect on UK markets, with the AHDB delivered price survey showing harvest 2016 prices holding above £260/t, she added. “However, if global prices continue to fall and unless sterling continues to weaken against the euro, UK prices may also have to weaken further.”