AN expected reduction in feed wheat consumption is likely to increase end-of-season stocks and drive down prices, it was revealed yesterday.
Figures released by the Home-Grown Cereals Authority show a 245,000 reduction in MAFFs feed-use forecast for 1997/98. End-of-season stocks are now expected to exceed 2 million tonnes.
As a result, UK wheat prices are expected to remain under pressure. Feed wheat has fallen by 5/tonne since early last month and is currently trading at about 69/tonne ex-farm.
Wheat exports to the end of March totalled 2.8m tonnes, HGCA officials said. That leaves about 600,000 tonnes to be exported during the next three months. Prices must drop further if the exportable surplus is to be shifted.