Large global wheat supplies see futures reach new lows

UK, Paris and Chicago old-crop wheat futures all reached new contract lows on Tuesday (23 February), with new-crop markets also remaining under pressure.

Ex-farm values for feed wheat ranged from £97/t in North East Scotland up to £102/t in several other regions as Farmers Weekly went to press on Wednesday (24 February).

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 “Sentiment remains bearish due to large global supplies, as the export pace remains behind what would be needed to prevent further stock build-up in the US and EU,” said Lydia Hamer at AHDB Grain and Oilseeds.

London wheat futures fell by £1.80/t to £103.40/t for March on Tuesday, with November futures easing 95p to £117.70/t.

“The growing price difference between this season and next continues to offer an alternative to releasing grain onto a depressed spot market for forward sellers that have access to both storage and finance,” she added.

Ongoing uncertainty over Egypt’s import policy led analyst FranceAgriMer to increase its estimate of French soft wheat stocks by 6m tonnes last week, with total soft wheat exports down 6% year-on-year, at 18.8m tonnes. EU crops were growing well, with 94% of French soft wheat in good to excellent condition.

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