Mixed signals for grain markets with feed wheat at £180/t in UK

Published 2024년 1월 5일

Tridge summary

The UK and EU experienced poor plantings due to a wet autumn and winter, leading to a limited demand for UK ex-farm feed wheat, which has kept prices at around £180/t. Spot prices for UK feed wheat on 3 January varied significantly by region, with a range from £166/t to £192/t. UK wheat markets have a neutral short-term outlook, while global trends and events, such as damage to a cargo vessel and conflicts in the Black Sea region, are impacting grain prices. The EU's Mars crop forecasting service reported disrupted sowing in northern European countries, leading to an expected increase in spring cereal planting, and a tightening of global wheat stocks is expected to support prices in 2024.

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

Original content

Poor plantings in the UK and EU due to the exceptionally wet autumn and winter are supporting grain prices, but limited demand has kept UK ex-farm feed wheat prices at about £180/t. Spot prices for UK feed wheat collected on 3 January had a notable regional variance and ranged from £166/t in Kent to £192/t in Northumberland. Meanwhile, milling wheat held a £68/t premium over feed wheat to average £248.5/t. UK wheat markets followed wider global trends over the Christmas period and have a fairly neutral outlook in the short term. Chicago wheat futures climbed at the end of 2023, but have since dropped back slightly. UK feed wheat futures matched this trend, opening at £194.35/t on 3 January for the May 2024 contract, down by £3.15/t on week-earlier levels. On 28 December, a large cargo vessel called Vyssos was damaged by a Russian mine on its way to load grain at a port on the Danube River, which added some support to global grain markets. The AHDB has forecast that escalations of ...

Source: UkrAgroConsult