Feed wheat eases to 76/t
By FW reporters and FWi staff
THE grain markets has drifted again after the Bank of England warned yesterday of a possible rise in interest rates.
Last week saw some firming of the wheat trade on the back of surprisingly generous export licences and more bullish estimates of January shipments from the UK.
But the increase of £1-2/ tonne in the ex-farm price for feed wheat has now proved to be short-lived.
Farmers sold into the rise and the Pound has risen to DM2.971 against the D-Mark. ex-farm feed wheat is fallen back to £76/ t and the futures market has also taken a knock.
“It is hard to see much upside to the market,” said David Doyle of shipper Soufflet. “We still have a long way to go on exports and we must stay competitive.”
Soufflet puts the UK export figure to the end of January at 1.8 million tonnes, leaving another 1.7m tonnes to ship in the last five months of the season.
That should be achievable though, as ever, traders are still wondering where the demand will come from. Quality remains a problem in some areas, while the level of imports still carries a question mark.