Market Update Feed Wheat and Pulses

FEED WHEAT

US, EU and UK markets are all 'at contract' and 'all-time highs' as wheat prices do not appear to be rationing demand at present.

Reports from Australia stress the need for rain across most wheat producing areas. Crop estimates are now edging below 20 mln/t.

India has received offers of 530,000 mt of wheat at this week's tender. They are expected to buy everything below $400 – which could total 350,000 to 400,000 mt.

The Ukraine says it will re-enter the export programme at some stage this season. This will be a political decision as much as a grain supply decision.

Imported Brazilian Corn is trading into the EU and UK. It is competitive for some consumers versus UK wheat. Some UK millers are reporting that their DON (mycotoxin) levels are above the legal limit for grain intended for human use. This will be a concern if these reports are confirmed and are widespread.

The market remains firm with little sign of any weakness unless the politicians intervene, for example by freeing up their GM tolerances. This is affecting three marketing seasons and these prices look attractive to farmers and very unattractive for consumers who still have to buy.

PULSES

The UK bean harvest is about to happen, with some combining done in Southern areas, with a very mixed bag of results. The odd sample look like they will do a human consumption job, but most are looking very variable as if they will go for feed. Yields on these early samples would indicate a much-reduced crop.

The pea harvest has finished, and again that does not look good .The UK without doubt will be a large importer.