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Bread-wheat shortage raises UK prices – HGCA

- 20 June 2000
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  • Delivered UK old-crop feed wheat prices closed 1-2/t higher last week. New-crop wheat prices were generally unchanged.
  • A shortage of suitable bread wheat supplies across northern UK regions has pushed old-crop prices around 4/t higher since last week.

    Traders reported continued buying interest from consumers for spot and July delivery, but noted that they were having to pay significantly higher prices to secure their requirements.

    However, further substantial price increases are unlikely as domestic supplies could be substituted with imported German A wheats, which are currently 101/t CIFFO.

  • New-crop feed wheat prices remain almost unchanged on the week despite strong currency movements. Only low volumes of new crop wheat have been booked so far, with pools accounting for the majority.

    The impasse between buyers and sellers remains in place, with producers unlikely to return to the market until after the forthcoming harvest.

  • New-crop barley prices remain firm, being around 2/t above new crop feed wheat prices.

    With intervention supporting new crop prices better than for wheat and the lower area planted this season, this premium over wheat is likely to persist into the new season

  • UK export markets remained quiet again last week. Very limited trading activity (forward paper trade) was reported mainly based on currency movements.

    A weaker French wheat market added additional pressure, pushing new crop wheat prices 50p-1.75/t below last weeks values.

  • Euro1 = 63.7p, 1 = Euro1.569 at time of writing.

    HGCA
    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 020 7520 3972


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