August 22, 2011

UK wheat output likely to beat forecast

Wheat output in the UK is set to surpass projections for 2011 following a rainfall that started in July which boosted crop prospects, said Jonathan Lane, trading manager at Gleadell Agriculture Ltd.

The harvest may come to between 14.6 million and 14.8 million tonnes, more than about 13 million tonnes expected by growers and brokers in the spring, Lane said. The quality of grain collected before recent rains also was better than expected, he said. Gainsborough, England-based Gleadell says it's the third-largest buyer of grains in the UK.

"Certainly there have been some terrible crops as forecast in the late spring and early summer, but as a general rule, farmers have been pleasantly surprised with what they have," Lane said by phone. "They are generally better than the pessimistic outlook people had. The quality of what was cut prior to recent rains was some of the best we've seen in years."

Rainfall that's slowing collection of UK wheat may now be affecting the quality of the grain, Lane said.

"We now need to see how the recent wet weather affects the balance of wheat left in the fields," he said. "Wheat we've seen from the northern parts of the UK appears to be holding out well. Now we need farmers to get into fields in the south and see how that's going."

Wheat for November delivery on NYSE Liffe in London gained 0.7% to 163.55 pounds (US$270.63) a tonne today. Wheat for December delivery on the CBOT, the world benchmark, rose 3% to US$7.615 a bushel.