Old-crop wheat has peaked, says Glencore

By FWi staff

OLD-CROP feed wheat prices have peaked for this season as the market starts to run out of steam, according to Glenore Grain.

Values hit contract highs at the end of last week but have since dropped back, says Glencores Robert Kerr.

“They are still at very good levels at about 80/t ex-farm, but July futures are almost 5 below Fridays peak of 86/t.

“The market probably wont pick up until harvest gets under way.”

New-crop wheat remains fairly stable with little farmer-selling, trading in the low 70/t off the combine.

“At the moment growers lack the confidence to sell on the forward market as the state of the crop is still thought to be below par,” adds Mr Kerr.

Meanwhile premiums for new crop spring malting barley have dropped about 4/t due to improved growing conditions across most regions of the UK, reports Banks Agriculture.

“Both winter and spring barley have made good progress, and spring malting premiums have weakened significantly in response,” says its weekly report.

However Mr Kerr disputes this, saying that premiums have remained fairly steady at about 15/t over feed.

“Premiums are not dramatically strong but they are at realistic levels. There is a massive crop in the ground and growing conditions in Scotland have been near perfect.

“Values for feed barley have eased 2 to 67/t ex farm, as growers gain confidence in next seasons crop – the market is moving very much on sentiment.”

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