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Old-crop grain price rise continues

- 04 May 1999
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Tuesday, 04 May, 1999

  • Delivered prices continued to move upwards during last week. Old-crop wheat rose by between £1 and £1.50 in England.

  • Prices were higher due to the current lack of grain
    entering the market and consumer demand for old-crop wheat.

  • Demand from domestic buyers has stretched across
    June and July, according to the trade.

  • The lack of immediate supply is a function of technical
    developments on the UK futures market and slow
    farm selling.

  • Export prices were higher this week, with nearby
    wheat export prices £2 per tonne higher. Higher
    prices were attributed to an active spot market and
    strong demand to cover short positions. Sterling was
    almost unchanged.

  • Traders still point to the balance sheet, suggesting a
    large export availability remaining. Short-term price
    support is coming from the outgoing May futures
    contract and slow farm sales.

  • The UK situation is being mirrored in France. French
    wheat prices are higher over the week, which has
    helped UK export prices retain a degree of
    competitiveness.

    HGCA
    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 0171-520 3972


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