Week Ending 03 September 2010

London
wheat futures £/t

Chicago
wheat futures £/t

Paris
wheat futures ?/t

Paris
OSR futures ?/t

Figures from close of market Thursday 02 September 

Nov 10
158.00

Dec 10
171.00

Nov 10 
145.25

Nov 10
377.00

Exchange Rates

£:$ 1.54

£:Euro .8300

Euro:$ 1.285

Wheat harvest returned to the UK this week with some settled dry conditions allowing progress on a national basis. The main focus from the trade perspective is ‘What quality will be achieved from the wheat being cut this week?’ Like most years we have seen a north/south divide appear on qualities, but unusually we have seen the northern areas holding on to quality better than the southern results. With the question mark remaining on quality, we have also seen milling premiums widen again this week with £28-£35 over feed wheat being achieved depending on locations for group 1 wheats.

We remain at a significant discount to French wheat, which will continue to encourage exports of all grades of UK wheat. This fundamental point (coupled with continued buying activity) will mean prices are well underpinned in the medium term.  

The barley market has had a bit of a breather this week with the return of better weather as harvest continues across the country. With a mainly settled forecast for the next few days the majority of the UK barley crop could be harvested by early next week, even in Northern Scotland. The malting barley market in Scotland is dominated by pre-harvest contracts, and with yields being at best average, little open market trade has occurred as yet. There is a slightly different story in England where good values exist for a range of delivery periods. The export market leads the way on values with UK Maltsters following behind with values mostly in the spot position. With prices firm, maltsters at the moment seem content to buy as they conclude malt sales or have spot space in their stores.

The feed barley market has been fairly quiet over the last few days as few new export opportunities have been seen. With the focus back on UK compounder, the price discount of barley to wheat has widened again. At the discount we have today any rise in the feed wheat market (as we have seen at the end of this week) will drag the price of feed barley with it.

Crop 2011 malting and barley values have also firmed this week in conjunction with the wheat market. Some significant ex farm values have been reached, and growers should look at locking in part of next season's crop if a reasonable profit over production costs can be seen.

The market recovered sharply this week in line with crude oil and equities. The situation remains the same with European crushing industry requiring a pull of seeds from Australia .

The Market still has some fundamental hurdles to overcome as to how it can supply the biodiesel industry with soy and rape oil.  We also see further support coming from other agriculture commodities, so in summary, see little to threaten the current price structure of rapeseed.   

Pulses

The fine weather has allowed the bean harvest to progress northwards this week. The first of the samples north of the Humber are encouraging, with both winter and spring beans acceptable for premium markets. Yields are variable but overall we are expecting below average yields, particularly in the south, and this has contributed to further price increases this week. Demand remains good for all qualities with domestic compounders continuing to increase bean inclusion rates in their formulations. Poor French yields have created further interest from Egypt for UK quality beans.

Variable quality peas have created a two tier market with good interest for quality blue peas, whereas high carry over stocks continue to limit demand for lower grades.

Click here for further information

View your Frontier grain movements and grain sample results online.

Click here to login to iTRAC or register for the service now

iTRAC

This is our online Information Service, providing you with access to your Frontier account - 24 hours a day. 

• View your grain sample results

• Track your grain and input movements

• Reconcile your financial information, including invoices and grain & input payment dates

View our iTRAC demonstration account 

Grain Marketing Solutions

Register now for access to your account 
online with iTRAC

Click here to login to iTRAC