UK milling wheat premiums continue to soar: Grain market daily

• UK feed wheat futures (Nov-21) closed yesterday at £194.15/t, up marginally from Friday (£0.15/t).
• US harvest is progressing well with 18% of maize and 16% of soyabeans now harvested, both ahead of the 5-year average by 3 percentage points.
• Trade from the Gulf coast begins to recover following disruption from storm Ida. Weekly inspections data shows 11 export vessels loaded from Mississippi River facilities in week ending 23 September, up from 7 the previous week but well below normal levels.

For the UK, quality wheat remains a major concern. It is well known that the milling wheat picture is particularly tight and premiums have continued to soar. Delivered milling wheat into Northamptonshire (October delivery) was quoted £36.50/t over feed wheat futures. That is £19.86/t higher than the 2015/16-2019/20 average for the same week. 

This is on the back of supply concerns; not only is quality wheat tight but freight availability is also supporting domestic prices. With freight difficult to price and obtain, traders are having to sift through the more variable quality domestic crop to fulfil requirements. While logistics and quality remain difficult, continued support could remain in the domestic milling wheat market.

Global markets

In international markets, Paris milling wheat futures (Dec-21) closed yesterday at €253.25/t, almost a contract high, but flat from Friday. Other key wheat futures contracts generally drifted too. US maize (Dec-21) gained $5.02/t yesterday to close at $212.40/t though.

Last night’s crop progress report stated US maize harvest was 18% complete, as of Sunday 26 September. This is almost inline with trade expectation.

Maize has been a leader in grain markets recently with progress generally weighing on prices. However, maize harvest in other regions is progressing with less haste. In France, the maize harvest was just 1% complete to September 20, 14 percentage points behind last year, according to a report released on Friday. Also, in Ukraine, harvest has not got off to the best start with early yields well below expectation.

US winter wheat planting is also ahead of average at 34% planted. Dry conditions are benefiting both harvest and planting progress. This said, it is one to keep an eye on, as much of the winter wheat growing region currently has limited to insufficient soil moisture. Although not unusual for the time of year, will need to be monitored.

You can subscribe to receive Grain Market Daily straight to your inbox. Simply fill in your contact details on our online form and select the information you wish to receive.

While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.

All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at info@ahdb.org.uk  © Agriculture and Horticulture Development Board. All rights reserved.