UK milling wheat premiums continue to soar

For the UK, quality wheat remains a major concern. It is well known that the milling wheat picture is particularly tight and premiums have continued to soar. Delivered milling wheat into Northamptonshire (October delivery) was quoted £36.50/t over feed wheat futures. That is £19.86/t higher than the 2015/16-2019/20 average for the same week.

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This is on the back of supply concerns; not only is quality wheat tight but freight availability is also supporting domestic prices. With freight difficult to price and obtain, traders are having to sift through the more variable quality domestic crop to fulfil requirements. While logistics and quality remain difficult, continued support could remain in the domestic milling wheat market.

Global markets​

In international markets, Paris milling wheat futures (Dec-21) closed yesterday at €253.25/t, almost a contract high, but flat from Friday. Other key wheat futures contracts generally drifted too. US maize (Dec-21) gained $5.02/t yesterday to close at $212.40/t though.

Last night’s crop progress report stated US maize harvest was 18% complete, as of Sunday 26 September. This is almost inline with trade expectation.

Maize has been a leader in grain markets recently with progress generally weighing on prices. However, maize harvest in other regions is progressing with less haste. In France, the maize harvest was just 1% complete to September 20, 14 percentage points behind last year, according to a report released on Friday. Also, in Ukraine, harvest has not got off to the best start with early yields well below expectation.

US winter wheat planting is also ahead of average at 34% planted. Dry conditions are benefiting both harvest and planting progress. This said, it is one to keep an eye on, as much of the winter wheat growing region currently has limited to insufficient soil moisture. Although not unusual for the time of year, will need to be monitored.

UK milling wheat premiums continue to soar: Grain market daily

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