UK Feed Wheat futures hits new record
Last night (Monday) the UK LIFFE feed wheat futures July contract closed at £200.00/t, a new record settlement (daily closing) price for LIFFE feed wheat. Despite no contracts being traded at this price yesterday for when the settlement was published, one lot of 100 tonnes has been traded at this price in trading so far today. This breaks the previous record of £198.50/t set on 25th February 2008, when one lot was traded.
The nearby price closed at £192.00/t, a two year high and now just £0.50/t below the record for the nearby contract (nearest delivery month), also set on 25th February 2008.
UK wheat prices have now seen almost continual gains since mid-November with Monday's nearby closing price £89/t higher than at the start of the crop marketing year on 1st July 2010. With the UK typically accounting for around 2% of world wheat production, UK wheat prices tend to follow world trends. World wheat prices have risen considerably since July due to concerns over the global availability of wheat and other feed grains. Current concerns focus on dry crop conditions in the US and South America, while heavy rains hamper the harvest in Australia.