Firm Pound, slim chance of exports as wheat slips

By FWi staff

WHEAT values have slipped slightly on the back of a firm Pound and limited export opportunities.

Ex-farm spot values for milling wheat now stands at £83.65/t, with feed wheat at £73.35/t.

May futures fell about £1 during last week to £72-£75/t, but recovered yesterday (Tuesday), climbing by 50p-£1/t.

This gain is attributed to a slight weakening in the Pound and reported short covering, noted a spokesman from the Home-Grown Cereals Authority.

“Any rallies, however, were limited by the slow tone of the UK market on the export front,” he said.

With the end of the marketing year fast approaching, and the start of the harvest in southern regions of the EU now only two months away, concern over the size of this years ending stocks is beginning to grow, said Cargills Ian Wallis.

Trade estimates put exports for the season to the end of February at 2 million tonnes.

At one stage we were on target to achieve this by the end of December, said a spokesman for Glencore Grain.

“Its old hat by now, but this leaves about 1.4 million to go by the end of the season – a tall order at this stage given that we are only at parity with French on the better quality biscuit wheat and $3 discount on feed wheat,” he said.

At the EU grains management committee weekly export tender 110,000 tonnes of open market wheat was granted for export licenses, with a maximum subsidy of Euro31.98.

This equates to an effective price on the world market of $94/t (£59/t).

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