HGCA sees UK wheat prices ease

  • DELIVERED prices for feed wheat fell by between 50 pence and £1 in most regions. Despite sterling ending the week the equivalent of 2 Pfennigs weaker, traders noted that crop size expectations and quality fears continue to grow.
  • Milling wheat prices also eased slightly. Most regions saw prices slip by between £1 and £2/t. Traders noted that prices were close to imported German wheat values for port side mills but UK wheat was still cheaper for inland mills.
  • They also noted that milling prices had been as much as £3/t higher midweek, but nearby demand had fallen and weakened prices by Friday.
  • Delivered barley prices, trading at a premium to wheat, are currently supported by good export trade. Reduced production in Spain has boosted import requirement, whilst demand from non-EU countries is also reported to be robust.
  • Some continued interest in UK wheat for nearby positions was reported on the export markets, although for further forward positions, UK prices remain less competitive, when compared to wheat from other origins.
  • Traders reported that there are few export markets for any quality other than feed quality wheat amid fears that there may be a shortage of quality wheat following the wet harvest.
  • It was also noted that harvest pressure appears to have eased, and farmers were reported to be more reluctant sellers than during the previous week. Traders suggested that the better weather is leading to farmers concentrating on planting next years crop.

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

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