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German imports cap bread-wheat price – HGCA

- 27 June 2000
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  • Delivered cereal prices ended last week mixed. Old-crop wheat prices fell by around 1/t, with the exception of Yorkshire, where prices gained 50p/t. All new-crop prices closed lower, between 50p/t and 1.50/t.
  • The delivered cereals market remains in the doldrums. Old-crop physical supplies remain scarce and difficult to buy and new-crop values are not sufficiently seductive to tempt farmers to sell forward.
  • Full-specification UK old-crop bread wheat is now a scarce commodity. Prices reflected this by gaining 1.50/t last week, an increase of around 7/t in less than a month. However, further gains of a similar magnitude are unlikely as prices are capped by imports of German wheat.
  • UK FOB markets continued to be very slow last week, with a strengthening Pound, slow new-crop supplies being made available and low volumes of international demand.
  • UK export wheat prices are currently around 4/t below equivalent French wheat prices. This is enough, traders suggest, to be competitive in export markets given traditional quality differences between the two countries. However, while the quality and quantity of harvest grain is uncertain, exporters remain cautious of filling their order books at present.
  • Euro1 = 62.15p, 1 = Euro1.6090 at time of writing.

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


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