March 21, 2011

UK wheat futures grow

The grain price revival persisted on Thursday (17 Mar) with London's March and May 2011 feed wheat futures contracts growing by a substantial GBP13.70/tonne (US$22) more than the previous day's levels.

This puts the March delivery contract, which expires next week on March 23, at GBP189.05/tonne (US$307) and May at GBP191.70/tonne (US$311) delivered.
 

These prices are approximately GBP20/tonne (US$32) off the top of the market. New crop was also up by a large margin; with November 2011 feed wheat closing at GBP158.20/tonne (US$257).

Drops earlier in the week had enticed some buyers back into the market, and the most recent export figures showing that the UK shipped a further 200,000 tonnes of wheat in January established the tight end of season predictions.

However, with so much political and economic ambiguity in all markets, the only guarantee currently is of continuing high volatility.