HGCA reports quiet UK grain business

  • Delivered wheat prices fell by between £1 and £3/t last week amid quiet trading activity.
  • Further gains by Sterling, the equivalent of around 3pfg, contributed to much of the price decline, although the Sterling effect was not noted on the London futures market, which returned a positive change on the week.
  • Delivered barley prices followed wheat prices lower last week as the stronger Pound pushed Novembers Sterling intervention price lower.
  • Port activity, the supporting influence of late also showed signs of slowing down.
  • Export prices were lower at the end of the week, mainly in response to stronger Sterling. Farmers were reported to be relatively reluctant sellers at current price levels. However, there were reports of continued underlying interest in UK feed wheat from northern European countries.
  • Traders suggested that the Commissions export restitution levels, granted on Thursday, were potentially bullish, on the basis that EU wheat was now priced more competitively on the international markets; prospects for more export sales would however depend on whether the Commissions aggressive stance represented a longer-term change of policy.

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

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