LONDON, ENGLAND — Wheat quality remains a major concern in the United Kingdom, said Alice Jones, a senior analyst with the Agriculture and Horticulture Development Board (AHDB).
In her market commentary on Sept. 28, Jones said 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 to 2019-20 average for the same week.
This is on the back of supply concerns, she noted, as not only is quality wheat tight but freight availability also is supporting domestic prices.
“With freight difficult to price and obtain, traders are having to sift through the more variable quality domestic crop to fulfill requirements,” Jones said. “While logistics and quality remain difficult, continued support could remain in the domestic milling wheat market.”
Although there are quality concerns, wheat production in the UK is projected to reach 15 million tonnes, according to a recent forecast from the Foreign Agricultural Service of the US Department of Agriculture.
If realized, the 2021-22 crop would be 5 million tonnes larger than last year’s output.