April 19, 2012

Gleadell to export 25,000 tonnes wheat to Algeria

Gleadell Agriculture Ltd. is loading 25,000 tonnes of UK milling wheat for delivery to Algeria, with another load of the same size to be shipped in May, said Managing Director David Sheppard.

Loading of the Handysize vessel Falcon Trader at grain trader Gleadell's Immingham terminal on the east coast of England's Humber Estuary is expected to be completed, Sheppard said. Another 25,000 tonnes will be loaded in May, he said.

Gainsborough, Lincolnshire-based Gleadell is a joint venture of Hamburg-based grain trader Alfred C. Toepfer International GmbH and Paris-based cooperative Union InVivo. The UK wheat being loaded for shipping to Algeria was sold by Toepfer in the past three months, Sheppard said.

"It's great for farmers because the milling wheat premiums over feed are through the floor," Sheppard said. The sale to Algeria allows UK farmers to get a better price for milling wheat over feed wheat, he said.

The grain was "competitively priced on the day," according to Sheppard, who declined to give financial details.

The April and May shipments follow a 25,000-tonne cargo of UK milling wheat in November, according to the director. Supplies from the UK have become uncompetitive, meaning further sales in coming months are unlikely, Sheppard said.

"I don't think UK wheat today is particularly competitive, the London May contract trades four pounds (US$6.36) above Matif," Sheppard said, referring to the Paris milling wheat contract. "We have no freight advantage, the quality is no better."

Loading 25,000 tonnes of wheat at the Immingham facility takes about 3 1/2 days, according to Sheppard.