Wheat price rally gathers pace
© Tim Scrivener The wheat price rise continues, with London’s May 2021 feed wheat futures contract closing above £190/t for the first time this week.
This morning saw the November feed wheat futures contract open at £189/t.
Spot prices feed wheat prices collected by Farmers Weekly on Wednesday 21 October from regional merchants were up £5.70/t on the week to average £182.70/t ex-farm.
Around the regions, values ranged from £175/t in Kent and East Sussex, to £188/t in Shropshire and Cheshire.
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Full-spec milling wheat prices breached the £200/t mark for the first time this season, averaging £200.30/t.
Spot feed barley gained almost £3/t on the week to average £136.80/t.
Comments from merchants contacted summed up the situation: “The markets are wild”, “American markets are strong”, “The pound is down”, and “We’re short of wheat”.
New-crop markets rise
New-crop markets rose in tandem, with the UK November 2021 feed wheat futures contract reaching £161.50/t midweek, having breached the £160/t mark for the first time a few days earlier.
“Typically, wheat markets would see pressure from maize markets,” said AHDB analyst Alex Cook.
“However, with US maize enjoying large Chinese purchases and crop risks for Ukraine and South America too, sentiment remains bullish for the grains.”
Dry conditions in some of the main US wheat-growing areas have also caused crop and market concerns, while new-crop Russian wheat ground is still very short of rain.