UK wheat firmer before Christmas lull – HGCA

  • UK delivered wheat markets slightly firmer

    UK delivered feed wheat prices were 50p-1 higher on the week. UK physical markets were reported generally quiet ahead of Christmas, with only small volumes trading.

    LIFFE old-crop wheat ended unchanged to 20p higher, while new-crop futures fell between 25-50p/t.

    Wheat futures volumes slipped to mid-November levels of around 250,000 tonnes, around a third of which was new-crop.

    Barley prices remain strong, but regionally focused on port demand at a 5 premium to wheat.

  • New-crop prices closer to world values

    November 2001 LIFFE wheat futures, at the equivalent of US$109, are at a $6 discount to US wheat futures.

    This discount has narrowed from $20 at the beginning of November. UK prices have risen 5, while US have fallen $4.

  • Supply and demand revisions – wheat use up in feed sector

    Higher wheat use in the animal feed sector was the main feature of the December revisions to the MAFF 2000/2001 cereal supply and demand estimates.

    Annual forecast usage was revised up by 140,000 tonnes to 6.3 million tonnes. Commercial end-season stock forecasts were reduced to 1.7m tonnes as a consequence.

  • Euro1 = 60.74p, 1 = Euro1.646 on 18 December

    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 020 7520 3972

    Click here to visit the Home-Grown Cereals Authority

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