Weaker Sterling boosts wheat prices

By FWi staff

DOMESTIC wheat prices are being boosted by a sliding Pound which has fallen substantially against a basket of European currencies during the past fortnight.

The Pound has lost more than 14 pfennigs against the Deutschmark and is currently trading at DM2.898. Over the same period, new-crop wheat prices have climbed by about £3/ tonne, according to the Home-Grown Cereals Authority.

Wheat futures trading in London closed yesterday at £80.15/ tonne (July), £78.15/ tonne (September), and £80.15/ tonne (November).

HGCA analysts say that prices could be even better. But expectations of a bumper wheat harvest and no forecast increase in domestic demand have limited gains.

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