Grain Markets Update

Bigger-than-expected yields on the continent and a stronger sterling appears to be undermining the UK’s grain export competitiveness.

London futures markets dropped another £1 on Monday (10 August), taking the November value to just £97.50/t, compared with £104/t a week ago. That would equate to a November ex-farm feed wheat price of about £92/t.

Last week, French analysts put the French wheat crop at 38.4m tonnes – 3 per cent bigger than last year’s crop – as extra yields more than compensated for a smaller area, leaving France with a 9-10m tonne exportable surplus.

The US is also looking at a bigger than previously forecast wheat crop, as harvest nears completion in favourable conditions.

The market now awaits the latest supply and demand report from the US Department of Agriculture on Wednesday, August 12.