Grain prices have climbed further with the ongoing Gulf conflict. May-26 UK feed wheat futures stand at £175.10/t, although as AHDB senior analyst Helen Plant points out, the political volatility makes predicting where markets will move difficult.
With Tehran allowing ships to pass through the Strait of Hormuz except the US and its allies, plus ongoing attacks against oil and gas facilities, crude oil remains at over $110/barrel, helping push grain prices higher.
What could suppress further rises is the latest European MARS report. Despite waterlogging and flooding in some regions, it cites the impact on arable crops as ‘limited’.
Oilseeds have also continued to rise. Paris rapeseed futures for May-26 stand at €506.25/t, again driven by the unpredictability of the Gulf conflict and the expectation that the US Renewable Fuel Standard (RFS) will be ratified soon, which should boost biofuels production.
