- Delivered UK cereal prices closed lower last week. Bread-quality wheat prices fell by around 2/t, feed wheat prices closed around 1.50/t lower and feed barley prices are unchanged.
- Bread-wheat prices were last weeks biggest casualty, with premiums over feed wheat falling by 1/t. This premium is currently between 12/t for London markets, rising to 16/t delivered Liverpool.
Traders confirmed that the stronger pound had a significant input on falling cereal values as well as millers reportedly being adequately covered for pre-Christmas positions.
- Farmers remain reluctant sellers at sub-60/t levels ex-farm and, as much of the harvest surplus has been sold or stored, they seem content, for now, to ride out the current marketing impasse and low prices.
- Market reaction to MAFFs provisional estimate of the UK cereal crop was muted, although prices initially fell 50p on the news.
Traders suggested the 16.8m tonne estimated wheat crop was on the higher end of the expected range.
- Trading in feed barley remains very thin.
- UK wheat export prices slipped as much as 1.75/t over the week. A stronger Pound against both the Euro and US Dollar, as well as the MAFF crop estimate, were reported by traders to be significant.
- Traders reported that UK prices remain below other EU origins for wheat. However, there still remains a debate on the suitability of UK wheat for certain
Taken from HGCA weekly MI Bulletin
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