Monday Market briefing - 20th September

Despite the quality problems with this year’s variable UK harvest, we have extremely strong demand for domestic grains, plus ample buyers for the UK exportable surplus. During last season’s small wheat crop, UK millers and feed compounders needed to import large volumes of milling wheat and feed grains – and the import value was comparable to UK prices. This year imported values are much higher than UK prices and so there is a greater financial incentive for buyers to use domestic wheat.

Group 1 milling wheat premiums remain well supported between £30-£40/MT over feed (depending on location). We have high demand into Avonmouth, and to other domestic mills in the Midlands including Wellingborough, Tring and Bugbrooke. Most of these mills also receive soft milling wheat and lower protein hard wheat which is used in flour milling grists. Export demand for milling wheat through our facility in Shoreham remains robust following the failure of the French crop – most of which will be shipped to China as feed wheat. In particular, UK soft Group 3 wheats such as Elicit and Firefly with high bushel weight and Hagberg falling number are in high demand into Iberia. We are also busy exporting UKP – lower protein Group 1 & Group 2 hard milling wheat.

Together with the issues in France with the wheat crop, their malting barley crop also deteriorated quickly during the summer rainfall. Therefore UK spring malting barley lacks a natural price competitor this season, and malting premiums remain firm starting at around +£40/MT for full-spec material. Quality is also variable, but fallbacks have been extended to allow for greater scope to include as much marginal barley stem as possible.

Last but not least, milling oats have also seen strong demand as production in Scandinavia and Canada have struggled. Prices have rallied in recent weeks as the UK is called upon to fill in the gaps.  For all available farm grains, contact your farm buyer to arrange sampling.

Have a good week