Wheat market sluggish as season ends

By Fwi staff
AS the end of the season looms closer farm trade remains slow with the majority of sales made for spot movement.

This short term supply is helping keep group 1 wheat premiums steady at about 10/t and group two varieties at 5/t, noted the Home-Grown Cereals Authority.

However, imports from the US and France are preventing domestic premiums from rising any further.

Bread wheat values are currently about 84.28/t and feed wheat has inched up to about 77.52/t.

But any tightness in supply could be offset if the planted wheat crop, already flowering in some regions, is harvested earlier than usual, said a spokesman from the HGCA.

Reports suggest harvest could be about a week ahead of last year, although still much depends on weather conditions over coming weeks.

The old crop wheat market on the continent also saw increases, mainly due to a sale of 125,000 tonnes of French wheat to Algeria, said Cargills Ian Wallis.

However, new crop trade is unlikely to gain any impetus until the EU Commission opens the free-market export tenders for the new season.

Only small amounts of new crop have been sold off farms to date and apparently the situation is similar in France.

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