Global pressure drives UK wheat prices down following increased expectations

25.08.2017

Global pressure has driven UK wheat prices down in recent weeks following increased expectations for the crop in the US and Russia.

Analysts have added about 15 million tonnes to global wheat forecasts, which has weighed on prices in the UK and around the world.

ODA UK analyst Rupert Somerscales said: “Initially it was due to falling prices in the US and a bearish crop report there. Every analyst has been increasing production estimates for Russia.

“It has pressured European prices lower and UK prices have come off the boil. But these have been less affected because of the impact of the pound.”

The UK harvest got off to an early start but has slowed due to colder, wetter weather.

However, the early cut in the east has been of ‘exceptional’ quality, according to Mr Somerscales.

“As time has gone by, with weather deteriorating, some crops have been impacted. A lot of it was very wet,” he said.

In the Midlands, he had seen average yields and quality, with those further north less impacted by the rain.
 

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