UK wheat prices jump 4% to two-year high

UK wheat led a rally in world prices of the grain on Thursday (Oct 28), rising 3.8% to finish at a two-year high.

Wheat prices jumped on all major markets, lifted by the surprisingly low rating attributed to the US winter crop in the first condition report since it was sown. The figure of 47% rated "good" or "excellent" on USDA statistics was the lowest for at least 15 years.

Chicago wheat ended up 2.2% at US$7.18 a bushel, with Kansas and Minneapolis wheat ending at two-year highs. Paris wheat for November increased by 2.2% to EUR223.75 (US$310) a tonne.

Rumours that China is in the market for wheat imports have also supported prices, along with fears that Australia's crop, while plentiful, will prove to be of relatively low quality thanks to persistent rains.

However, London wheat's gains were particularly notable, bringing the grain back to EUR70.75 (US$98) a tonne for November delivery, the strongest finish since April 2008.

Even at Thursday's (Oct 28) levels, the grain has risen by about 6% since Monday's surprise US data, a little behind the 7% rise in the price of Chicago wheat, the global benchmark.