News

UK: Grain harvest 2023 gross margins

Wheat
United Kingdom
Published Mar 2, 2023

Tridge summary

Fluctuating input costs and volatile grain and oilseed markets continue to add uncertainty to farm business profitability.

Original content

New crop UK feed wheat futures (Nov-23) averaged £233.34/t in February, up 14.6% on the year from last year’s new crop futures, when the Nov-22 contract averaged £203.59/t in February. From reaching their peak in May, global wheat prices have eased somewhat, though remain historically high as the war in Ukraine provides a floor of support to markets. While declining as of late, input costs this season remain high. From July 2022 to January 2023 imported ammonium nitrate (AN) (34.5% N) averaged £784.00/t, up 34.4% from last seasons (2021/22) average of £583.00/t. Today, I take a look at how this changing picture could impact gross margins for harvest 2023. The aim of these figures is not to directly indicate how much profit can be made by each crop, as costs will differ from farm to farm. It is more to give an indicative view into the difference in profitability on the year, and a comparison of how profitability in different crops could react to the changing market conditions. In a ...
Source: Ahdb
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