September 19, 2013

 

UK wheat imports hit record high in last 22 years

 

 

In at least 22 years, UK wheat imports opened 2013-14 at their fastest pace, confirming market talk of a lingering taste for foreign supplies which has spurred ideas of particular weakness among domestic prices.

 

The customs data showed that UK, which after a dismal harvest last year brought in 2.94 million tonnes of wheat in 2012-13, the most since the 1970s - imported 328,511 tonnes in July, the first month of the new season.

 

In part, buyers purchased ahead for the summer because of the likelihood of a delayed UK harvest this year, a knock-on effect of a dismal autumn planting season and cold spring, which encouraged buyers to snap up foreign supplies ahead.

 

Due to having enjoyed the consistency of imported wheat last season, flour millers bought foreign supplies forward. UK wheat imports in July were notably strong from Canada, at 50,211 tonnes, and Germany, at 103,741 tonnes - both countries noted suppliers of high quality milling wheat.

 

Despite having produced less wheat than it needs to cover its own consumption this season, the extent of imports has fuelled ideas that the UK will be forced into substantial wheat exports to limit stockpiling.

 

This would weigh on UK prices, which would be set to levels needed to compete on export markets, even against some tough competitors such as Black Sea shippers.

 

Exports in July reached 31,631 tonnes, falling to low, but not unprecedented, levels ahead of the harvest. The UK is typically a net exporter.

 

The customs data also showed the UK turning net importer of rapeseed in July, with buy-ins of 39,105 tonnes far exceeding exports of 4,616 tonnes. This represented the first month of net rapeseed imports for three years, and follows some talk that the UK will, unusually, be unable in 2013-14 to meet domestic annual consumption needs of about two million tonnes this year thanks to a harvest depleted by poor weather and pest attacks.

 

The USDA estimates the harvest at 2.0 million tonnes, although results are deemed particularly difficult to gauge this year given uncertainty over how much crop was abandoned, even late in the growing season. However a buoyant start to US rapeseed imports in 2013-14 had been expected, given the late domestic harvest.

Video >

Follow Us

FacebookTwitterLinkedIn