Wheat
Wheat prices have found their way back to that £190-£200 range we have been talking about for sometimes now on November futures. The Ukraine story appears to have settled for the time being and despite a continued drop in global wheat figures, the maize story is just helping keep things in check for the moment.
Harvest has got off to a slow start this year with the continued wet weather in the UK with analysts starting to raise concern about what that could mean for quality, however, with the continued heat across Europe, this will ensure the UK continued to have an export option which will likely limit the spread we could have seen for feed wheat against milling wheat.
Soya
Soya prices have largely held this week, some following the easier feeling of the grain markets but also the better weather prospects across key growing areas. This rain is limited though so until we really see where pod filling is at then prices are likely to stay supported. Longer term though, the South American projected plantings continue to put pressure on prices.
Organic
Organic prices appear to have found a level at the moment which is generating new crop trade and origins are likely to be Romania and Kazakhstan this coming season. The premiums for organic at these origins though are low compared with conventional which would suggest that some parcels may start to be shipped as conventional because it is simply just not worth the hassle, and this then tends to be the catalyst for prices starting to move upwards.
Some Indian sources of soya are beginning to get their certification through and plan shipments to the UK for the later part of the year but premiums are still quite high and do not quite tip the favour back to Indian now that most mills have had to make the choice to switch to Chinese.
Regards,
Kay Johnson & Martin Humphrey
