HGCA sees UK wheat prices fall

- 26 September 2000

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Last week delivered bread wheat prices fell between 1.00-3.50/t and feed wheat prices between 50p-2.00/t. Feed barley prices closed mixed.
Despite Sterling being pushed slightly lower against the Euro last week, UK delivered wheat prices weakened across the board. A combination of supply/demand factors and crop quality issues pressured prices lower.
Merchants confirmed that producers were beginning to offer more supplies of wheat to the market last week whilst 60/t, ex-farm, is achievable for many regions.
Premiums for full specification bread wheat narrowed to between 14-18/t, depending on region, partly as a result of increased grain supplies being made available.
UK wheat export prices fell nearly 2/t over the week. Traders noted that they remain concerned that UK group 3 wheat may not be suitable for many foreign milling purposes.
Barley prices remain robust, if little traded. Export traders noted that big boats could be sold at about a 4/t premium to coasters, but trade is thin.
Export traders suggest that wheat samples sent to overseas buyers are getting a mixed response. They report that some overseas buyers still prefer French wheat due to its better suitability, despite lower Hagberg numbers.
Traders also noted that premiums for basic milling wheat had fallen to 75p-1/t.