Old-crop prices ignore currency changes HGCA

  • Delivered old-crop feed wheat prices fell 50-1/t last week. New-crop wheat and barley prices closed a similar amount higher. Bread wheat prices were mostly unchanged on the week.
  • Old-crop wheat prices managed to ignore the volatile fluctuations in currencies seen mid-week because the delivered market is currently dominated by interior demand rather than from exporters.
  • Interest in new-crop was generally more sprightly than old-crop positions, with feed prices taking direction from the weaker Pound.

    Full-specification bread wheat premiums continue to reflect the good harvest prospects, being priced at around 15/t above the feed base price.

  • Traders reported another quiet week, especially for old-crop positions. There are now only two months remaining before the start of the grain harvest and, with domestic consumers having bought much of their pre-harvest requirements, attention is inevitably focusing on new-crop business.
  • Old-crop prices were slightly weaker despite a weaker currency. Traders cited weak demand, failure of prices to fall when Sterling strengthened and the release of more reduced-levy maize into Iberia as pressuring old-crop values.
  • New-crop prices were unchanged to slightly higher. Traders noted that until the EU export campaign objectives are clear, prices will take a lead from currency and the world markets impact on French values.

    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 020 7520 3972

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