Farmers still hold on to wheat

By FWi staff

UK wheat has continued to lose competitiveness this week against wheat from other EU origins, said a spokesman from Gleadell Banks.

“Although our market is lower, it has not kept pace with falls in other EU markets, particularly in France. And the chief reason behind this is the small amount of wheat currently being sold ex-farm.

“Unless farmer selling picks up, this situation will continue,” he said.”

However, sooner or later the market will correct itself and the drop will be bigger and more painful when it does come, he warned.

Milling wheat values remained reasonably constant at £91.88/tonne, while feed wheat fell back to £75.57. But futures failed to hold their value, falling by about £1/t to £77.95/t for January delivery. May deliveries fell even further, dropping £1.30 at £81.70/t.

With the end of the year fast approaching, there are two factors most likely to affect grain values in the New Year; the single currency, as well as the unusually high volume of grain that remains unsold on-farm, said Ian Wallis of Cargill plc.

“If a significant percentage of these grains is offered to the market in early January and February, it could leave to a downward pressure on prices. This may mean that producers will achieve better prices through selling in early December, rather than waiting until January, he said.