New Crop Feed Wheat at £150/T

The last seven days have brought yet another quiet week to the grain markets. Feed wheat for spot collection is continuing to trade in the region of £161-4/T ex-farm depending on farm location – and how flexible you are with loading over these next few festive weeks!

Further forward, feed wheat for collection into the New Year would make £165/T ex-farm whilst movement into next spring is currently falling just short of £170/T ex-farm.

Buyer interest had been thin over the last fortnight or so; the majority of end-users appear well covered up until the end of the year now and with prices into the New Year dawdling around the same position, they aren’t exactly rushed to extend their cover.

Similarly, farm-sellers aren’t exactly inspired by the currently stagnant levels (particularly given the amount of shooting that “just has to be done” at the minute). I can’t help but feel that feed wheat values could do to drop or gain £5/T in order to create some interest on both sides of the trade.

Meanwhile feed barley values have struggled to maintain their £140/T ex-farm position for January collection despite the good demand. Feed compounders appear to be using barley in larger quantities at the minute which isn’t exactly surprising given the current £25-30/T price difference. Any local interest would make £140/T ex-farm and should at this stage probably be considered as a selling opportunity.

Speaking of selling opportunities, interest in new crop feed wheat has gathered pace this week and values are encouraging. Feed wheat for harvest collection is now valued in the region of £150/T ex-farm whilst November movement would make £155/T ex-farm. Feed barley is at a significant discount to this; as available collection is currently valued in the region of £130-5/T ex-farm.

Drilling conditions this autumn have been excellent for winter crop entry, particularly across Europe, Southern Russia and Western areas of the US; all key wheat producing regions.

Here in the UK, almost 2 million hectares worth of land is expected to be drilled with winter wheat, a 22% increase on last year’s difficult drilling season. Winter Barley area is expected at 484,000 hectares, a 55% increase on the year previous.

£150/T ex-farm may not be such a bad place to start for a small tonnage?

Spring barley contracts for low nitrogen varieties including Concerto, Odyssey and Overture are now available at a fixed price with normal MAGB terms to apply. Contracts offer as available harvest movement with good moisture allowances at a £25/T premium to feed wheat (a £40/T premium to feed barley). Tonnages are however limited, particularly given the amount available on farm from this year’s harvest; please contact the office for more information.