Rough weather in Europe and US pushes up grain prices
© Design Pics Inc/REX/Shutterstock UK feed wheat prices are strengthening amid weather concerns in Europe and the US.
Ex-farm prices for spot delivery gained £1/t in the week to 3 May to £143.40/t.
Dry weather across Europe and heavy snow in the US have damaged growing wheat crops, pushing Chicago wheat futures up by a record amount over the weekend.
More than 30cm of snow fell on ripening wheat in four Midwest states over the weekend – including the main producing state of Kansas – potentially damaging swathes of hard red winter wheat crops, according to MDA Weather Services.
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In Kansas, about a third of the crop was reported to be damaged, with 10% at risk of irreversible damage.
While the impact of the storm was still being assessed, initial reports estimated wheat losses may exceed 13.6m tonnes, according to a report by Bloomberg.
As a result, the markets saw a knee-jerk reaction on Monday, pushing hard red winter wheat futures up by 8% from Friday’s close to trade at $168.65/t (£130.48/t) for July.
Old crop UK demand is still relatively thin with compound trade falling away and limited exports due to insufficient supplies.