May 5, 2006

 

UK feed wheat prices edge up as end of season nears

 

 

Feed wheat prices in the UK have climbed this week as stocks fell lower with the end of season approaching.

 

An estimate by the Department for Environment Food and Rural Affairs (DEFRA) that feed wheat consumption would be up by 128,000 tonnes also strengthened prices.

 

Traders estimate about 2 million tonnes of the UK's 2.3m tonne exportable surplus had been shipped by the end of April.

 

Ex-farm values were above GBP 70/ tonne (US$129.6) in most areas of the country.

 

This was the highest spot price during this season, according to analysts.

 

Although these high prices are not conducive for exports, it would not have to be, since demand is strong locally.

 

Most farmers want stores cleared by the end of June and buying would likely accelerate.

 

Nidera UK's managing director Mark Dawdry said there had been much less grain available for some weeks.

 

Growing demand is helping to push up prices. Furthermore, most farmers are now close to selling out or have outstanding commitments which prevent them from selling any significant volumes.

 

David Doyle, head of Grainfarmers' wheat desk, said ex-farm prices had been given further impetus from by Dutch and German  buyers who expressed interest as end-of-season stocks grew tighter in northern France.