Wheat rises on dry weather worries

UK new crop feed wheat prices have gained about £6/t in a week, driven by dry weather in southern Russia and parts of the US.  

The London feed wheat contract for November 2015 gained £2/t today (Monday, 23 March) to stand at £135/t late in the day, having risen almost £5/t in the previous week.

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The heavy supplies of old crop are benefitting slightly form the new crop market sentiment but traders warn that this could be short lived-rain is forecast in the affected areas and US stocks and prospective planting data are expected at the end of March. The moves were also exaggerated in a market looking for any news, they said. 

These were expected to show a year-on-year fall in the US maize area, possibly offset by warm conditions which would support more maize planting ahead of the later sown soyabean crop, said HGCA.

US spring wheat planting could also be higher than expected, pushing up supplies of high quality milling wheat next season, it said.