After hitting a contract low earlier in the week, grain prices have recovered to finish broadly where they started the last month of the year. The latest AHDB Grain Market Report shows UK feed wheat futures (May-26) fell fractionally to £172.25/t, the Nov-26 contract stands at £176.25/t.
A rise in the strength of sterling weighed on UK prices. In the middle of the week, the Pound reached its highest level since late October (£1.00 = €1.1434, LSEG). However, this was offset by concerns over an escalation in the Ukraine conflict, with Russian threats to attack Ukrainian vessels and port infrastructure.
Weather concerns further afield could offer further support. A decrease in temperatures in the western US could lead to adverse conditions for winter crops and pose logistical risks.
Pressure builds on rapeseed
May-26 Paris rapeseed futures slipped to €473.50/t, with the Nov-26 contract also down to €464.00/t. Expectations of an increase in the Canadian canola crop weighed on prices. Further to that, there are expectations for higher Malaysian palm oil stocks in next week’s data due to be released (10 Dec) by the Malaysian Palm Oil Board.
US soya bean exports to China also remain a focus for traders. A speech by the US Treasury Secretary indicated that China would buy 12 Mt of US soya beans by the end of February. The market had been working on a timeline of by January, so this pushed soya prices lower, though further export sale announcements triggered a slight recovery.
