Following a week of volatility despite the weaker pound, feed wheat for spot collection is valued at £137/T ex-farm.
For those of you looking to secure movement at £140/T ex-farm now that the market has eased, October/November collection can now be negotiated.
As for milling wheats, most soft group 3 and 4 varieties at full specification for “biscuit flour” (10.7 Protein, 180 Hagberg and 74 Bushel Weight) are achieving at least a £5/T premium.
Not all group 4 varieties are however suitable to certain milling destinations, please speak with your farm trader to discuss your requirements.
Group 1 milling wheats at full specification are currently valued around the £150/T ex-farm mark and have been for a week now despite the recent volatility.
As there is no set premium as such on this particular market, when there is movement in the feed wheat base value the premium can often increase/decrease.
For instance, feed wheat has valued anywhere from £135/T ex-farm to £140/T ex-farm over the past week but milling wheat values have remained firm in the region of £150/T ex-farm.
As for feed barley, spot values are currently in the region of £122/T ex-farm whilst movement further forward into November offers £127/T ex-farm.
There are some small markets for any surplus/un-contracted spring malting varieties, again please speak to the office to discuss your requirements.
Elsewhere, the first official estimate of Canadian Canola (OSR) production was unexpectedly low compared with earlier predictions.
Based on a Canadian survey taken in July, the latest estimate is at 18.2 million tonnes which is a significant decline from earlier estimates, particularly given that this season’s area drilled to Canola is larger than that drilled to wheat.
Furthermore, in other oilseed based news, Chinese imports are on the rise before peak season has even started.
According to the General Administration of Customs of China (via Agrimoney), China imported 1.45 million tonnes of soybeans in August.
As usual, the US and Brazil have been the main origins of Chinese soybean imports this year but the increase to demand has had a knock-on effect for oilseed values generally.
Agrimoney added that “Given the heavy global supply outlook for soybeans, Chinese demand levels are key in mopping up this supply and helping to provide support for soybean prices which then trickles into the wider oilseed complex”.
Consequently, OSR values have suffered extreme volatility over the past ten or so days with spot values trading anywhere from £315/T ex-farm to £328/T ex-farm. Today’s value is currently at the lower end of this spectrum.