Feed Wheat Trades sub £140/T ex-farm
Posted by Anderson Grain Marketing on Jun 3, 2014 in AGM News | 0 comments
New crop feed wheat values have slipped below the £140/T ex-farm mark this week with current values for as available collection at harvest in the region of £135/T ex-farm. For those of you looking for £140/T ex-farm, this would probably be a realistic offer for October/November collection at this stage depending on both farm location and quality specification.
Feed barley would currently make £120/T ex-farm for as available collection at harvest.
According to the HGCA, UK crops are now entering the month of June “around 10 days ahead of normal. Typically speaking, winter wheat crops are now approaching ear emergence and many winter OSR crops are now at the end of pod set”; both of which are anecdotally applicable in our region.
Further afield, winter crops across Southern France and Western Germany are said to be “anything up to two weeks ahead” of normal and growth is continuing to soar following a fortnight of warm temperatures and plentiful rainfall. According to the local French Agricultural Ministry, combining could be underway in as little as four weeks.
Elsewhere, concerns over “excessive heat and potential drought” over in Southern Russia appear to have subsided over the weekend, adding further pressure to new crop values. Confidence is also growing for winter crops over in neighbouring Ukraine, particularly given the current, unhindered pace of exports there despite the ongoing political unrest.
As for old crop values, feed wheat for spot collection is currently priced in the region of £150/T ex-farm. Movement further forward would offer a small premium but buyers continue to be quiet at the minute given the probable early start to this year’s harvest and are in the meantime reassured by the continuous trickle of both wheat and maize corn imports into the Humber.
Both old and new crop OSR values have also come under pressure this week with new crop values retreating to £250/T ex-farm. Oil world have this week forecast this year’s European OSR crop at a staggering 22M/T, a significant increase on last year’s output and values have therefore adjusted accordingly.
Looking ahead, the trade will remain focused on the weather across much of Europe and around the World as the market ‘BULLS’ look for any small chink of light on which to move the market away from the ‘BEARS’ as potential crop size continues to drive prices ever downward.