High futures prices prompt interest in forward wheat sales
© Tim Scrivener UK feed wheat futures for November 2022 have been at £190/t or higher for more than a week, prompting more interest in farmer forward sales.
Ex-farm values for November 2022 were in the £180s/t depending on region on Wednesday 27 November, with selling interest largely by those who had bought their fertiliser before the recent price hike, said one merchant.
At analyst CRM Commodities, managing director James Bolesworth said the November 2022 futures were at record levels at this time in the season.
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Putting in a prudent level of cover was advisable, he said, but also cautioned that it was a very well supported market, with stocks-to-use ratios very tight around the world.
“Going into next season, a key factor will be demand – in China for corn and in North Africa and the Middle East for wheat,” said Mr Bolesworth.
How farmers react to high input prices is another element, but he did not think there was any reason to think there would be a significant drop in the wheat area.