Currencies and grain trading

16 June 1998

Currencies and grain trading

Tuesday, 16 June, 1998

  • £1=DM2.958 / FFr9.91 / $1.639

  • French FOB spot wheat value: FFr 710 (£ 71.64)

  • Chicago July wheat at close: $2.74 (£ 61.35)

STRONGER Sterling pushed new-crop values lower once again but, with rain over most of the country, old-crop wheat prices remained unchanged . Overall, most crops are reported to be in reasonable condition.

In the USA, 18% of heat has been harvested, compared with 5% a year ago. This has pushed Chicago futures to finish 2¢/bushel off seven-year lows.

Traders are now talking of an aggressive start to the new-crop campaign, with both the EU and USA looking to secure quantities of early business. USDA
has allocated $550 million to their EEP for the coming campaign, compared with $150m last year. This would suggest the USA is in a position to undercut EU prices if it needs to.

Prices at Mondays
wheat futures close:

MONTH Close Change
JUL 75.00 +0.50
SEP 74.15 -0.60
NOV 76.15 -0.60
JAN 78.15 -0.60
MAR 80.15 -0.60
MAY 82.15 -0.60

    Approximate commodity
    values, £/ tonne, ex-farm:

    June Class 1 milling115
    June feed wheat70
    June feed barley65
    Harvest feed wheat66
    Harvest barley62

  • Information provided by BDR Agriculture Ltd, Harvest House, 64 North Street, Bourne, Lincolnshire PE10 9AJ – click here for further details

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