UK wheat futures rebound to £170/t after hitting floor

Global and domestic grain markets have recovered slightly from last month’s lows, with a small uplift as a result of heightened tensions in the Black Sea region and talk of potential EU tariffs on Russian imports.

Independent grain merchant Dewing Grain said renewed tensions over the Odesa port facilities in Ukraine are a reminder that geopolitical risks are still present in the grain market.

UK feed wheat futures have risen by 6% in the past two weeks, closing at almost £170/t on 19 March for the May 2024 contract.

Meanwhile, the premium for new-crop has grown further to £20/t with the November 2024 futures contract at £190/t.

James Bolesworth, managing director at CRM AgriCommodities, said: “Grain markets have found their feet after, in many cases, touching three-year lows late last month and falling below the cost of production for many growers.”

Mr Bolesworth added that the upside risk to wheat prices looks markedly more significant than the downside over the next six months.

He said: “Volatility could be marked too, if funds are tempted into reversing their negative stance on grains, an outcome which only looks more likely given the outlook for lower interest rates.”

Tags: futures, markets, grain, EU, UK, Black Sea region, imports, feed wheat