UK wheat prices rise sharply in volatile market
© Tim Scrivener Ex-farm feed wheat prices collected by Farmers Weekly on 25 February averaged £232/t and ranged from £217/t-£253/t for March collection.
Average prices were up by £13 on week earlier levels, following a day of extremely volatile trading due to the conflict between Russia and Ukraine.
Meanwhile, May 2022 UK feed wheat futures markets have dropped from peaking at £260/t on Thursday 24 February to £237/t on Friday.
Despite this fall, futures prices are still at their highest level since November 2021.
See also: Dramatic commodity market reaction to Russia moves on Ukraine
Jonathan Lane, ADM Agriculture’s head of grain trading, said any major retracement in prices is unlikely until a peaceful compromise can be resolved.
Mr Lane said: “UK markets remain underpinned by global events, with delivered premiums still firming to the more north and western parts of the country, reflecting sharp rises in haulage rates.
“While it is difficult to look beyond the current Russia/Ukraine conflict, global exporters’ stocks are at a historically low level. A further bumper crop will be needed for any replenishment of stocks, placing weather centre stage.”
Ex-farm feed barley prices ranged from £200/t to £222/t for March collection and averaged £210/t, up by £2 on week earlier levels, widening the premium for feed wheat.
Oilseeds
Oilseed prices also reacted strongly to the global news. On Thursday 25 February, Paris rapeseed futures (Matif) reached €835.75/t (£698.10) before closing at €763.50/t (£639.42). Markets stood at €754/t (£631.10) at 12pm on 25 February.
Oilseeds markets are also being affected by reduced availability from South America following droughts.
Owen Cligg, trading manager at United Oilseeds, said oilseed prices in the UK are coming back after a big spike on Thursday, but prices are likely to remain relatively volatile in the short term.
Mr Cligg said: “Old crop rapeseed is still valued at more than £600/t, after spiking yesterday at about £620/t ex-farm in most areas of England. New crop had a big spike as well yesterday, to £560/t ex-farm for rapeseed, whereas today it is back to about £530/t ex-farm at best.”
Ex-farm oilseed rape prices collected on 25 February averaged £614/t and ranged from £600/t-£625/t for March collection.