- UK grain prices up, large volumes traded on futures
UK delivered wheat prices rose 1-1.50 for 2000 crop deliveries. Prices were helped higher by consumer demand and limited farm selling, on a backdrop of a weaker Sterling against the Euro.
Ongoing concern about new-crop plantings also helped support old-crop values. Old-crop futures were around 1.50 higher. New-crop futures were as much as 2.95 higher, giving farmers the opportunity to sell feed wheat for over 70 ex-farm for pre-Christmas 2001 in all regions.
Over 350,000 tonnes of wheat futures traded last week, around double recent volumes. New-crop contracts accounted for 25%.
- H&I grain usage slightly down, distillers change
Millers wheat usage was down just 0.4% to end-October, whilst maltsters barley usage was down 1.4%. End-October maltsters barley stocks, at 1.01m tonnes, are the highest since end-October 1997.
Distillers continue to increase wheat usage at the expense of maize. Just 300 tonnes of maize were used in October, compared with nearly 5000 tonnes in October 1999.
- Retail compounders usage down, integrated up
Wheat and barley usage by GB retail compounders to end-October was down 1% and 8% correspondingly.
In contrast, poultry integrated units wheat usage was up 5%, at 0.41m tonnes.
- UK agricultural incomes forecast down for 2000
MAFF forecast total income from farming down 29% in real terms to 1.71 billion in 2000. This compares with 2.4bn in 1999, and a recent peak at 6bn in 1995.
Factors noted as driving the decline include lower prices and higher input costs. Per head, total income from farming is forecast at 7500 this season, compared with 10,500 in 1999.
Taken from HGCA weekly MI Bulletin
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