Feed wheat stocks loom large

By FWi staff

THE good weather over the Bank holiday weekend and at the start of this week has seen combines out throughout the country. But as the harvest progresses the pile of feed wheat is mounting up.

Many fear, that with only about 40% left to harvest, the remainder of the crop will only make feed standards.

Preliminary test results of wheat cut last weekend appear to confirm fears that the quality of the crop has been severely affected.

Hagberg levels fared particularly badly with many samples now giving a falling number of between 100 and 120, said Cargills Ian Wallis.

“But, the overall picture for milling wheat still requires clarification, as a reliable estimate of the area cut before the wet weather began has yet to be established,” he added.

As a result of quality concerns as well as the predicted high yields wheat values dropped by as much as £2/t over the week.

Ex-farm feed wheat is currently trading at about £69/t while September futures have fallen £1.25 to £70.75/t on the back of harvest pressure and the progress made over the weekend. November futures fell 60p yesterday (Tuesday) to £73.15/t.

However, milling values have gained support over fears of a shortage in quality wheat. Milling wheat inched up £1/t over the week leaving premiums at between £22-£24/t to feed.

Delivered milling wheat prices continue to equal similar quality imported German A wheat prices at about £100/t, noted a spokesman from the Home Grown Cereals Authority.

Domestic prices are trading at a £6/t discount to French values although traders warn that at current levels imports from the continent could still be cheaper.

Exports are already behind last year, and if figures prove correct, we will need to export about half a million tonnes per month to get rid of the surplus, said a spokesman from Glencore Grain.

“A tall order – although not impossible,” he added.

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