Trade turns to new-crop wheat

Wednesday, 18 February, 1998

By FWi staff

AS the market for this seasons wheat has quietened, all eyes have turned to new-crop prices. But traders say this coming autumns prices must increase if farmers are to be tempted to forward-sell their crop in greater numbers.

Ex-farm feed wheat is currently trading at a spot price of around £75/ tonne, depending on region.

Cash prices are £75.80/ t (South-east); £76.30 (South-west); £74.80 (East); £73.50 (Midlands); £76.40 (North-east); £78.50 (North-west); and £77.50 (Scotland).

Forward values for new crop wheat on the LIFFE futures market are much higher. Wheat is currently trading at £84.60 (July), £81.00 (September), £83.00 (November), and £85.00 (January 1999).

So far, those prices have attracted only a reasonable amount of interest from growers, say a cross section of traders.

But if prices rise, the market sentiment is that as much as 60% of this years wheat crop could be forward sold to grain pools and co-operatives before it is harvested.

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