Grain values hold as exports increase

Export business is keeping UK grain prices steady in many regions, helped by a relatively weak pound.

However behind the increase in export activity, stocks remain high, warn traders. France’s end of season stock estimate was raised earlier in the week to a 17-year high of 6m tonnes.  

Feed wheat was worth between £100 and £105/t ex-farm late on Friday, with the south coast, East Anglia, the North West and Yorkshire paying at the top end of this range. The Midlands was at about £100/t but values in Scotland had been pushed below that level.

See also: Farm input prices fall… but not enough

“Decent chunks of export business have been book up to the end of March,” said Gleadell trading director Jonathan Lane. This was relatively well spread between ports, but not much had been booked for the April to June period, he said.  

Domestic consumers were holding off, seeing plentiful supply with limited disruptions as signs of lower prices to come, said Adam Dewar of shipper Nidera.

“At current old and new crop spreads the trade may look to carry wheat forward, which whilst it would help to tighten the old crop supply, given the provisional expectations for new crop, would really only delay the issue unless we see a weather event before or during the Northern Hemisphere harvest,” he said in the firm’s weekly market report.

Shipping markets remain nervous of selling to Egypt, which rejected a Canadian cargo for ergot recently after having rejected a large French cargo in early February.

Upcoming Webinar

AUGUST
19

How to best plan your farming retirement and pension

With BPS being phased out and new schemes being put in place in the next few years, it’s an important time for farmers to start planning retirement and the best way to secure their pensions. Whether you are considering a succession process or would like to retire from the industry outright, our panel of experts will go through all the options you need to consider no matter what your life plan looks like. Join the session at 17.00 - 18:15 on Thursday 19 August 2021.
Register

Online grain trading made easy with Farmers Weekly Graindex

It takes just a couple of minutes to create a listing on Farmers Weekly Graindex and you’ll get a range of prices to compare from active buyers who want your grain.
Visit Farmers Weekly Graindex