Grain prices have started the week on a strong note again, with most of the London feed wheat futures contracts up by about £1/t, putting November at £205.95/t.
Egypt’s purchase of 475,000t of feed wheat – mainly from Black Sea origins – coupled with questions over Russia’s export availability, is keeping the market strong.
Dry weather in parts of Canada and Australia was also raising concern over crop potential, said merchant Nidera.
Many in the market feel the US Department of Agriculture’s opinion on the size of the corn crop puts it too high – a supply and demand report on Wednesday will update the figures.
Despite feed barley values at a significant discount to feed wheat, little trade is taking place, said Nidera. “Export values remain depressed due to a lack of demand and plentiful supplies in Europe. Domestic demand is curtailed by lack of feed orders, as the livestock sector struggles to absorb higher raw materials costs.
“Barley crops have performed well in terms of yields. Malting quality for winter and springs is good in East Anglia, yet more variable as harvest progresses north; Scottish quality is not ideal but still usable according to early reports.”
Despite this season’s low specific weights, Gleadell has managed to find 19,000t of 72kg/hl wheat to load the Mv Zapolyarye at Great Yarmouth (pictured above). This will be shipped to Portugal and is the largest vessel ever loaded in Norfolk and Suffolk, says Trevor Gates, the firm’s East Anglia regional manager.