Brokers reported consumer-buying interest for September and for further forward months. However, fulfilling immediate cover is taking priority and with supplies of the required quality wheat being slow to reach the market, bread premiums firmed 1 to between 15-19/t, depending on region.
The Pound lost nearly 5 cents against the US Dollar last week, as sentiment turned in the Dollars favour. Traders are mindful that the recent pound/dollar erosion helps UK wheat become competitive on international markets. Unsubsidised UK wheat exports could then be possible.
UK wheat export prices were generally lower last week. A firmer sterling against the Euro added price pressure mid-week, although prices recovered on Friday as the Pound regained strength against the single currency.
With French feed wheat currently competitively priced, export enquiries for UK feed wheat remained limited. Trade, with regard to big boat, is scarce and thus the prices are nominal.
Taken from HGCA weekly MI Bulletin