Negative tone as wheat market drifts

By FWi staff

THE UK wheat market failed to make any attempt at a recovery and remained relatively unchanged over the week.

News that the United States will supply the majority of a 240,000 tonne purchase of wheat by Egypt added to the overall negative tone, said Ian Wallis of Cargill plc.

UK bread wheat prices fell £3.90 to £89.80/t, while other milling wheat also fell, dropping £2.10 to £74.20/t. Feed wheat prices held up slightly better, falling just £1.30 to £73/t.

But futures managed a small recovery on the back of more interest in French wheat. A positive move by the European Commission on export refunds last week was also thought to boost futures.

A total of 219,500 tonnes of open-market wheat export licenses was granted at a maximum refund of Euro31.99.

This latest refund could increase the competitiveness of EU grains, said a spokesman from the Home-Grown Cereals Authority.

Despite this positive move, the sentiment within the trade is that prices are unlikely to make any real recovery in the near future.

The UK market is likely to shadow the French market for the immediate future, said a spokesman from Glencore Grain. “We both have surplus wheat to dispose of and both are competing for the same export markers.

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