Rough weather in Europe and US pushes up grain prices

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.

See also: Virtual Farm modelling shows better outlook for harvest

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.

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