Grain prices have weakened over the past week, after a bearish report by the US Department of Agriculture.
Its latest monthly report saw world wheat ending stocks revised up by 4m tonnes, with corn stocks ramped up by 7.8m tonnes. As a result, UK wheat prices followed the global market down, with feed wheat ending the week to Wednesday down by £2/t, to about £195/t ex-farm for spot movement.
“Flour millers in the UK remain well covered with imports and many will have bought imported crop to take them through September,” said Nick Tapp, head of agribusiness consultancy at Bidwells. “There is still demand from the feed sector, with many looking for cover towards the end of the season and into the harvest period, due to nervousness triggered by a tight balance sheet.”
Peas and beans also dropped sharply this week, with feed pulses down by £5/t as a surplus of human consumption beans came to the market. “Egypt can’t pay for the spring beans that it would normally have bought, so they’re ending up on the domestic feed market,” said Paddy Barrett from Askew & Barrett. New crop peas and beans were fetching £220-225/t ex-farm, with micronising peas at about £350/t.