UK feed wheat values for both old and new crop wheats have succumbed to further market pressure throughout the course of the last month, as crop prospects throughout the northern hemisphere continue to improve.

Farm-sellers with old crop feed wheat left in the shed are currently offered somewhere in the region of £115/T ex-farm while movement further forward into August would make £120/T ex-farm.

As for new crop feed wheat, £114 to £116/T ex-farm currently looks like a realistic offert.

Over in the US, initial concerns over the recent dry spell appear to have calmed following several weeks of “useful” rains which have been ideally confined to northern areas, allowing for spring wheat planting to continue with little disruption.

Elsewhere, spring planting progress is beginning to fall behind schedule in Russia and trade opinion is split regarding this; many are attributing this to economic reasons and therefore hold little hope of these acres being drilled at all, while others suggest that the recent wet weather is predominantly responsible for the above.

Either way, Russia has an estimated 25 million hectares worth of spring land yet to drill and any assumptions regarding the final area may be a little premature at this stage. Closer to home, winter wheats across France, Germany and the UK are described as being in a good condition although some dryness concerns are beginning to develop, particularly across central areas of Europe.

On the other hand, however, the recent dry weather and favourable temperatures have allowed for excellent progress to be made with regard to this year’s spring grain crop.

As for old crop European supplies priced in Euros, wheat is continuing to be exported at a record pace with the majority of feed wheats currently destined for Asia.

Elsewhere, Morocco and Saudi Arabia are keen buyers of European milling wheat at the minute.

UK wheat exports are also gathering pace, although the continued strength of the sterling against the Euro is limiting opportunities.

With just two months remaining of the current 2014 to 2015 trading season, all eyes will be kept firmly on developing crops across much of the northern hemisphere as the market searches for potential price drivers – something which we appear to be lacking at the moment.