It has been a strange week for the grain market over the last seven days.
Monday’s closure of Hull’s bio-ethanol plant Vivergo brought a shaky start to the grain market while Thursday’s extended Thanksgiving celebrations ended the week with a lack of direction.
Feed wheat for spot collection continues to trade in the region of £140/T ex-farm with slightly more offered to those who are flexible on collection throughout December – please contact the office to discuss your requirements.
As for milling wheats – both full specification group 4 hard wheats (10.7 protein) and full specification group 3 soft wheats (10.7 protein) are currently commanding a £5/T premium but movement this side of Christmas is becoming increasingly limited.
As for full specification group 1 varieties, £152/T - £153/T ex-farm is currently being offered for spot collection; although the supply/demand aspect is unchanged, the weakening of the feed wheat market makes the premiums appear that little bit stronger.
As for feed barley, £135/T ex-farm is being offered for June collection – again please get in touch with the office to discuss your requirements.
As for OSR values, delivered values have retreated to £322/T – £325/T for delivery into the crush at Hull before the end of the year. Depending on farm location, this put’s ex-farm values somewhere in the mid £310s/T ex-farm.
This has come as a surprise to the trade given that the pound is 1.5% weaker than at the beginning of the month.
The recent announcement that India is to double the import tax on all edible oils from 15% to 30% has probably had a knock on effect within the oilseeds market; although they tend to import soybeans as a majority, it will impact OSR values also.
Last week, DEFRA published the provisional English regional data for this year’s harvest (as of Thursday 12 October).
Looking at the breakdown, the North East and Yorkshire/Humber regions saw the largest annual percentage increase in wheat production at 15.1% and 12.5% respectively.
Over the past five years, the Yorkshire/Humber region has on average contributed to around 13% of
English wheat production and this year’s annual increase will therefore have a significant contribution to the total UK increase as a whole.
As for yields, in the Yorkshire/Humber region, yields are estimated at 8.8 tonnes per hectare – a larger jump from the 7.9 tonnes per hectare achieved last year.