Wheat markets firm but 22/23 wheat balance sheet ‘unbalanced’

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The latest AHDB market report shows EU wheat markets firmed yesterday on the back of strong export demand and rising tensions between Ukraine and bordering EU states. Last Friday, The European Union said it would not extend the ban on imports of Ukrainian grain to Ukraine’s five EU neighbours. However, Poland, Hungary and Slovakia have extended the ban themselves, with Poland warning it will impose more restrictions should the dispute with Ukraine escalate (Refinitiv).

UK feed wheat futures (Nov-23) closed at £190.20/t yesterday, up £1.20/t from Tuesday’s close. The Nov-24 contract closed at £199.15/t, up £1.05/t over the same period.

Paris rapeseed futures (Nov-23) closed at €449.00/t yesterday, up €8.75/t over the session. The Nov-24 contract closed at €470.50/t up €3.75/t from Tuesday’s close.

Rapeseed prices followed support in the US soyabeans market yesterday. Chicago soyabean futures were supported due to bargain buying as prices reached their lowest since mid-August. Traders are also awaiting more yield data as harvest progresses across the Midwest.

The 2022/23 season AHDB balance sheets are also published.

The key points are;

Heavy wheat availability and lacklustre animal feed demand has led to greater year-on-year end-season stocks.

A fall in barley usage for animal feed production outweighs a climb in H&I usage for the 2022/23 season.

Full-season domestic consumption of maize is relatively unchanged on the year.

With a quality crop, 2022/23 oat exports are the highest since 1995/96.

For full details please visit; https://ahdb.org.uk/news/analyst-insight-an-unbalanced-2022-23-wheat-balance-sheet

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