Strong pound pressures milling premiums

By FWi Staff

MILLING premiums are set to fall as millers continue to import wheat, grain traders claimed today.

According to traders Glencore Grain, the strong pound has already caused Class One and Class Two premiums to drift back by £2-3/ tonne. And prices could ease further, even though millers still have wheat to buy between now and June.

Competitively-priced imported wheat has put downward pressure on domestic milling wheat returns all season. Imports are expected to reach 1.1 million tonnes by this summer. Last year, imports totalled 750,000 tonnes.

At £101/ tonne, bread wheat currently commands a £25 premium over feed wheat prices. But many in the trade fear that it wont be long before the price for quality wheat slips below £100/ tonne if Sterling remains strong.

Milling wheat at 11% protein eased by £1 last week as the Pound climbed 3 pfennings against the Deutschmark to DM2.989.