Wheat price edges lower in wait for harvest
© Tim Scrivener UK feed wheat prices fell in the week to 19 June, down £2.50/t on the previous week to £144/t spot ex-farm, dragged down by limited demand.
The decline in values reflected lack of movement in the market, with no-one buying or selling as wheat harvest approaches, said traders.
Harvest had begun in some areas, with reports suggesting consumers were feeling less pressure to buy.
August new-crop feed wheat values averaged £137.50/t across the country; ranging from £135/t to £144/t ex-farm for spot delivery.
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Milling wheat premiums sat at about £12/t over feed values – this was considerably back on the same point last year, when premiums averaged £29.60/t.
This is likely to be down to the high level of milling varieties planted and early reports of good quality.
GB wheat area for harvest 2017 was estimated to have fallen by 3% on the year to 1.76m hectares, according to the latest results of the AHDB Planting and Variety Survey.
The reduction in estimated wheat plantings and a smaller crop in 2016 mean reduced wheat stocks are expected to be carried over from 2016-17.
Therefore, yields in the coming harvest will have to exceed last season’s levels for domestic supplies to increase.