Feed wheat prices up a touch but milling premium falls

Spot feed wheat prices continued to creep upwards in the week to 26 October, rising £1.10/t to average £128.90/t ex-farm.

In contrast, the milling wheat premium fell £1.50/t to average £7.60/t.

UK feed wheat futures for the nearest month hit the highest level since 2014, closing at £136.35/t on Tuesday (25 October), up £1.10/t on the previous week.

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The gains were due to stronger export demand and the approaching end of the November 2016 contract, said AHDB Cereals & Oilseeds.

Low sterling values also continued to push up UK futures prices, with the gap between the December 2016 Euronext (Paris) wheat and the November 2016 London LIFFE wheat contracts falling to its lowest level since December 2015.

Relatively strong demand for EU wheat, despite tighter availability, and the euro losing ground against the US dollar had supported European wheat futures, said AHDB.

Spot oilseed rape values increased £4.40/t in the week to 26 October, to average £343.60/t ex-farm.

This was £90/t above levels in the same week last year.

Weak sterling continued to cushion UK prices from global fluctuations on the oilseed market, while gains were due to strengthening soya bean markets.