By FWi staff
STERLINGS retreat from its recent 10-year high against the Deutschmark has sparked a rally in domestic cereal prices. The Pound is now trading at DM2.99, well below the DM3.10 level reached four weeks ago.
Combined with the uncertain quantity of UK grain left in-store, UK ex-farm bread-making have climbed by over £10/ tonne to about £113/ tonne. Thats a premium of almost £40/ t over the feed wheat price of £74/ tonne. Merchants say that the market appears to have found a level, following heavy selling at the beginning of April.
Although good for farmers who still have supplies on farm, traders BDR Agriculture warn that higher prices are once again encouraging several flour millers to source milling wheat supplies for May and June from Germany.