After UK feed wheat futures hit new contract lows earlier in the week, prices have recovered slightly.
The latest AHDB Grain Market Report shows UK feed wheat futures (May-26) at £169.00/t, while the new-crop (Nov-26) contract also gained slightly, currently standing at £171.90/t.
There is already significant pressure from an ample supply situation coupled with competitive supply, particularly Argentinian new crop following recent upward revisions.
A fall in the value of sterling helped increase the competitiveness of UK wheat. What traders will assess now is the interest cut by the Bank of England, although it was anticipated. AHDB arable specialist Gabriel Odiase expects this to weigh on sterling, which can make UK wheat more competitive for exports and offer some support to domestic values.
Paris rapeseed futures (May-26) fell to €461.25/t following declines in Chicago soya bean and Winnipeg canola futures (May-26).
The market continues to track Chinese purchases of US soya beans with the February target of 12mt. Current sales volumes are a little short of what many analysts expected.
