Grain prices drop back in UK as Brexit uncertainty adds to market unease

An expected increase in UK production this harvest and the lack of competitiveness of UK supplies against other feed origins and new crop maize imports was keeping the pressure on new crop prices, according to David Woodland at ADM.

The AHDB 2019 planting survey results showed the GB wheat area was up 4 per cent this year (see page 23) at 1.802 million hectares.

“As for old crop, growers are taking stock of remaining on-farm supplies and some tonnage is becoming available,” Mr Woodland said.

“However, in certain parts of the country where demand remains sluggish, even these limited amounts are enough to push levels close to new crop values.”

Ramifications

Mr Woodland also pointed out questions remained over Brexit creating unease in the city and on the currency markets.

He said while a weaker pound would support farmgate prices, a no-deal Brexit would have greater ramifications, as the UK would have to start trading on World Trade Organisation terms.

Benjamin Bodart, CRM Agri- Commodities, said global markets have received what was probably ‘one of the biggest statistical surprises for grain markets in recent history’, as the USDA released its acreage report.