27 February 2019
UK wheat markets lost ground again last week, old crop (May-19) fell an additional £1.50/t Friday – Friday.
Meanwhile new crop UK wheat (Nov-19), closed the week down just £0.15/t, the discount into new crop shrank slightly from £18.00/t to £16.65/t (May-19 to Nov-19).
Global markets were largely influenced last week by Egypt’s state grain buyer GASC purchasing 360kt of wheat for April shipment. The purchase was made up of 180kt of French wheat and 60kt each of Romanian, Russian and Ukrainian origin wheat (Reuters).
Although the EU won tenders, overall markets moved lower as US origin wheat was notably missing from offers, which pushed markets lower before seeing some recovery.
With EU exports more on track to achieve forecast levels, reducing some of the bearish European market pressure, US exports have still been lacking. With plenty of US wheat left to export, and the timescale to do so getting shorter, the global old crop outlook will continue to be bearish.
With news surrounding the US-China trade talks firming soyabean prices, the domestic view remains bearish as oilseed markets closed lower Friday-Friday. UK delivered rapeseed prices fell £8.00/t, with March delivery quoted at £320.00/t. Old crop Paris rapeseed futures (May-19) dropped €2.75/t Friday-Friday, as demand remains relatively muted.