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Could 2022 UK feed wheat futures reached a document excessive of £294/t at noon on Friday (4 March).
This was up £63/t on week-earlier ranges and markets stay significantly unstable.
Battle within the Black Sea area between Russia and Ukraine continues to drive costs and market uncertainty.
See additionally: Enter and output prices hit new highs as Ukraine disaster deepens
Ex-farm feed wheat costs collected by Farmers Weekly on 4 March averaged £275/t for March assortment, up by £43/t in per week. Costs ranged from £255/t-£295/t.
Jonathan Lane, ADM Agriculture’s head of grain buying and selling, mentioned the massive volatility may be anticipated to proceed.
Markets are buying and selling greater as the continued scenario between Russia and Ukraine prompts fears of extreme shortages of exportable wheat.
Mr Lane mentioned: “Ukrainian ports will keep closed till the invasion ends and maritime safety may be restored.
“Continued uncertainty over occasions and their impact on Black Sea grain exports, together with potential export washouts and invoking of pressure majeure clauses, proceed to help the markets.
“Exporters and consumers are speeding to ebook EU provides to interchange misplaced Ukrainian exports.”
Spring wheat plantings in each Russia and Ukraine might be impacted by the battle.
Oilseeds
Paris rapeseed futures (Matif) stood at €823/t (£679.39/t) for Could 2022 at 12pm on 4 March, up by €93/t (£76.77/t) on week earlier ranges.
Ukraine has closed ports which have an estimated 15.1m tonnes of maize left to export, in keeping with United Oilseeds.
Will Ringrose, ADM Agriculture’s head of oilseeds, mentioned: “Every day buying and selling ranges have been the biggest ever seen. Black Sea provides stay a priority, particularly of sunflower oil for previous and new crop.
“Previous crop logistics are being affected and new crop planting is prone to be delayed or postponed. Markets will stay extraordinarily unstable till the commerce figures out a option to resolve the void.”
Impression on plantings
Anthony Speight, senior analyst at AHDB, mentioned Ukraine and Russia collectively account for 10% of worldwide main oilseed manufacturing and greater than 76% of worldwide exports of sunflower oil.
Mr Speight mentioned: “If Ukraine’s sowing window is compromised, it’s going to possible have an effect on world vegetable oil costs.
“In flip, an affect on world vegetable oils will inevitably have an effect on rapeseed too. If Ukrainian sunflower plantings are compromised, we may see a bullish market sentiment proceed throughout oilseed markets as an entire, into the 2022-23 advertising 12 months.”
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