UK wheat futures fall alongside global markets


UK wheat costs have slipped additional in latest days following wider global market developments.

Farmers Weekly’s UK spot feed wheat costs gathered on 14 January averaged £202.40/t, down £6/t on the earlier week. Spot costs ranged from £192/t to £216/t between areas.

Global wheat costs fell this week within the wake of an outlook that urged regular provide, decreased consumption, lowered exports and elevated shares.

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The US Department of Agriculture’s newest World Agricultural Supply and Demand Estimates (WASDE) report included a big discount in global consumption estimates, outweighing smaller will increase in global manufacturing.

Chicago and Paris wheat futures each fell on the information, with Paris wheat futures down by €7 (£5.84) on the earlier week to common €263.75/t (£220.20) on 13 January.

UK market

The London May 2022 feed wheat futures stood at £213.05/t on 13 January, down £4.45 on week earlier ranges.

Alice Jones, senior analyst at AHDB, stated: “Much of the information across the USDA experiences focuses on adjustments to estimates additional afield.

“However, with UK provide and demand comparatively tight this yr for each cereals and rapeseed, home pricing has tracked global markets carefully this season.

“Therefore, any effects to Chicago and Paris futures markets will generally translate into domestic prices.”

Jonathan Lane, ADM Agriculture’s head of grain buying and selling, stated on 13 December: “UK prices have fallen from the pre-Christmas peak, down around £4/t over the week. London futures for May 2022 have slipped around 5% since the December high and 10% from the contract high in late November.”

The London May feed wheat futures fell once more this morning to £210/t.

Maize

The US Department of Agriculture’s report estimates decrease global maize manufacturing, lowered consumption and decrease ending shares than in its earlier report.

The global coarse grain manufacturing forecast has been minimize by 1.6m tonnes to 1.5bn tonnes. Maize manufacturing estimates had been minimize in Argentina and Brazil however elevated within the US and Ukraine.

Soya beans

The Chicago soya bean May-22 contract stood at $509.68/t, down $3.21/t on the earlier week, following a soar the day gone by when the WASDE report was printed.

The USDA forecast decrease manufacturing, crush, exports, and ending shares in its 2021/22 global soya bean outlook.

Will Ringrose, ADM Agriculture’s head of oilseeds, stated “Yesterday’s USDA report fell largely inside commerce expectations.

“US soya bean yields increased from 51.2 to 51.4 bushels/acre, while the harvested area dropped very slightly to 86.3m acres.”



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