Wheat subdued as heavy crop weighs on market

Grain markets remained subdued to the end of the week, with harvest feed wheat at between £105/t and £111/t ex-farm on Friday.

However November prices, at £114/t to £118/t ex-farm, have not lost as much ground as harvest prices, said Openfield head of desk and marketing Glenn Mason.

Harvest progress in France is generally well ahead of the same date last year. However, the market is nervous about milling wheat quality, something which is not a familiar problem for the French crop. Storekeepers there will have to nominate quality specifications for deliveries of futures grain and until these are known, the market was likely to remain nervous, said Mr Mason.

The quality concerns in mainland Europe may lead to some export opportunities for UK wheat, said Grain Harvesters’ Charles Roberts, but it was difficult to find buyers in the spot market.

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“Traders have been looking around Europe trying to source quality wheat, but with the rains that have hit French quality moving over into Germany and Poland, concerns in these countries are also starting to increase,” said Gleadell’s David Sheppard.

Meanwhile, the Russian wheat harvest estimate has been raised above 57m tonnes and it remains to be seen whether US and EU sanctions on Russian banks have any impact on grain traders.

ADAS reported UK harvest progress report to 29 July as follows:

  • Winter wheat – less than 5% of the area harvested

  • Winter barley – 85% of the area harvested

  • Spring barley – 2% of the area harvested

  • Oats – 5% harvested

  • Winter oilseed rape – 75% of the area harvested