Spot wheat reaches a price plateau

By FWi staff

THE grain market remained quiet last week, with limited farmer selling keeping a lid on spot wheat prices.

This follows four weeks of rising values, and Banks Agriculture believes that the market has reached a plateau.

“Globally bullish factors balanced by high domestic and EU stocks means that, in the short term, prices will level off,” says Banks in its recent report.

Consumers are holding back from forward buying beyond February, perceiving there to be large quantities of wheat still on farm.

“Farmers should keep a close eye on market-lifting factors such as currency and the granting of positive export restitutions.

“This will keep consumers on edge and may provide market peaks on which to sell grain,” says Banks.

Feed wheat is worth 68-70/t ex-farm for January 2001, 69-73/t for May, depending on location.

The export campaign is continuing steadily, with 400-450,000 tonnes of business being done in the last two months, reports Banks.

“We have been winning good export trade for group one and two bread wheats to southern Europe and North Africa.

“If this level of trade is kept up, we will start the new season without high levels of carry-over stocks.”