UK: Milling wheat premiums easing

Published 2024년 6월 27일

Tridge summary

The article highlights the decrease in the gap between the UK's ex-farm spot prices for bread and feed wheat in May, which remains higher than the five-year average. Despite the reduction, milling premiums have increased, with bread wheat fetching significantly more than feed wheat. The demand for flour remains stable, leading to a slight increase in wheat demand by flour millers. The limited domestic supply has resulted in a higher proportion of imported wheat, with imports surging by 64.6% compared to the previous year. This trend is expected to persist due to the anticipated small 2024 UK crop, with the volume of imports depending on the price of imported wheat.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Sign up to receive the Weekly Market Report and Grain Market Daily from AHDB. The gap between the UK monthly average ex-farm spot prices for bread and feed wheat fell to £56.40/t in May. This is down from £62.10/t in April, and £70.60/t a year earlier (May 23). However, this still remains historically high in comparison to the five-year average for May of £29.50/t. More recently though, milling premiums look to have edged higher again. In the week ending 20 June 2024 (latest data), UK spot ex-farm bread milling wheat averaged £64.80/t more than feed wheat. Delivered prices, which include haulage costs and more, for new crop bread wheat are also still at a firm premium to feed wheat futures. Bread wheat to be delivered into the North West in November was quoted at £279.50/t on last Thursday, at an £82.05/t premium to Nov-24 futures. This is higher than the same time last year, when bread wheat for November 2023 delivery was at a £70.50/t premium. So, what can we expect moving ...

Source: Ahdb