US grain figures push wheat market higher

Maize and wheat prices rose after the US Department of Agriculture published its world supply and demand report late on Friday.

The new figures showed US end of season maize stocks at just three weeks’ supply. With lower than expected corn and wheat stocks the main influences on prices. Maize consumption for animal feed has been at higher than expected levels while the planted area of wheat was lower than expected.

Investment funds bought corn and wheat contracts on the news with European markets rising too. The May 2013 contract for London feed wheat futures was at £212.50/t this morning, up £3/t since Friday’s close while November 2013 was at £185.50/t, up £2.50/t.

Higher soya bean estimates in the US figures put pressure on oilseeds markets.

The impact of this year’s quality problems is showing in the proportion of UK wheat being used in miller grists. This fell to just over 80% in November 2012 compared with 89% in July 2012.

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