October 8, 2008

A total UK wheat acreage of 2 million hectares this year will produce about 17 million tonnes of wheat, with an exportable surplus of more than 3.5 million tonnes, according to Gleadell Agriculture's MD David Sheppard.

June census showed that pig breeding herd fell 7 percent while total poultry numbers declined 3 percent, which reduced feed demand considerably.

"Exports seem to have got off to a healthy start but it must be remembered that, although the September figure may be impressive, August was much quieter due to wet weather," said Sheppard.

Sheppard said new Australian crop forecasts are in the range of 20.5-22 million tonnes, a sharp increase from last year's 13 million tonnes crop.

UK wheat remains relatively competitive for export but feed buyers are reluctant to extend cover as crops around the world keep getting bigger, said Sheppard.

A large EU corn crop is coming to the market soon and feed wheat prices are likely to move down by GBP 5-10, according to Sheppard.