The weakening of the sterling against major global currencies has led to a stronger price increase in UK feed wheat futures compared to other key global grain futures markets. The May-24 contracts for UK feed wheat futures rose by 0.9%, outpacing the 0.3% rise for Chicago wheat futures and 0.4% for Paris milling wheat futures. This is attributed to the potential cut in UK interest rates, which has made imported grain more expensive in the UK, thereby allowing UK prices to rise more before being limited by the cost of grain imports.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
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Sign up to receive the Weekly Market Report and Grain Market Daily from AHDB. UK feed wheat futures recorded stronger price rises than key global grain futures markets yesterday, as sterling weakened against key global currencies. Using the May-24 contracts as an example, UK feed wheat futures rose by 0.9%, compared to 0.3% for Chicago wheat futures and 0.4% for Paris milling wheat futures. Chicago maize futures for May-24 gained 0.4%. The global market rose yesterday, led by short covering and spillover support from the Chicago soyabean market; see market commentary for more details. However, the rises in UK feed wheat futures were enhanced by a drop in the value of the pound. Sterling dropped from £1 = €1.1703 to £1 = €1.1654 yesterday (LSEG) due to suggestions that a cut in UK interest rates is moving back onto the agenda. Yesterday, the Bank of England held interest rates unchanged at 5.25%. However, one member of the Monetary Policy Committee, which decides the rates, voted ...
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