UK wheat prices firmed into the new year with short-term support in global markets as a result of weather concerns across some of the key producing regions such as Russia and Argentina.

However, this most recent price rally may well be temporary with traders at ADM saying fewer exports from Ukraine and Russia may be offset by higher export volumes from Argentina and Australia.

Spot prices for UK feed wheat lifted above £180/t ex-farm during the first week of 2025 and sit roughly in line with year-earlier levels.

See also: Mixed outlook for UK wheat in 2025 driven by global markets

UK feed wheat futures opened at £190/t on 8 January for the May contract, up marginally on the previous month.

Returns for milling wheat have also improved with a spot price of £218/t on 3 January; however, the milling wheat premium has slipped back from £64/t this time last year to roughly £35/t at current levels.

Closer to home, European trade association Coceral estimates the combined EU and UK grain crop at 298m tonnes for 2025, up from a harvested crop of 278.5m tonnes in 2024.

Wheat production (excluding durum) is forecast to rise from 125.5m tonnes to 140.4m tonnes, due to a larger area and assuming average yields.

Meanwhile, barley production is forecast up by 2.4m tonnes at 59.7m tonnes.