Export refunds encourage UK wheat business HGCA

  • Delivered feed wheat prices ended last week 50p-£1 higher, while bread wheat prices ended mixed.
  • Domestic demand continues to take a back seat in directing market prices, which is instead being led by port interest and shipper activity.
  • With sales of 400,000t of French wheat to Iran being announced recently, traders were not too surprised at last weeks export refund awards of 500,000t free-market wheat.

    Indeed, wheat futures prices in London and France only took moderate support late on Thursday and early Friday.

    However, traders did note that the export award announcement was timely and took some encouragement.

  • Steady volumes of farm wheat are reportedly being supplied now that fieldwork has been accomplished. However, with plenty of physical grain already available in the system, any effect on grain prices of farmer selling has been negligible.
  • Wheat export markets were slightly firmer last week, gaining up to £1/t. Markets remained quiet, but the prospect of exporting a large wheat tonnage during November helped to support values. UK wheat is currently competitively priced against French origin.
  • Sterlings continued strength against the Euro and reduced enquiries from third countries continue to limit any significant price rises for UK barley.

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

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