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Spot wheat demand boosts UK old-crop

- 27 April 1999
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Tuesday, 27 April, 1999

  • Demand for spot wheat continued to support old
    crop positions. Feed wheat prices on delivered
    markets rose by £1/t, while new-crop wheat
    fell by £1 to £1.50/t following a lack of
    interest.

  • Trading activity remained confined to the delivered
    market. The higher spot values in recent weeks
    triggered more farmer selling, although volumes
    were small, which was absorbed by consumer and
    merchant buying (short-covering).

  • Export markets were reportedly again quiet last
    week. Trading was limited to actions against existing
    positions.

  • With only small volumes of UK grain being exported
    to the Continent, traders are concerned about the
    remaining exportable surplus. Trade sources
    indicated that wheat exports during April remained
    below expectations.

  • The strength of Sterling against the Euro has very
    much reduced the UKs export competitiveness on
    European markets. Much of the business done in
    Europe is of French origin.

  • However, old-crop prices continued to rise, generally
    following the firmer values on the domestic markets.
    New-crop FOB wheat prices ended the week lower,
    falling by between 75p and £1.50/t
    during the week.

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


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