|
Harvest Update - Wednesday 1st December 2004
UK Harvest
Wheat prices continued to rise last week by between £1 to £2
per tonne reflecting farmers continued reluctance to sell and buyers
needing to fulfill both spot and forward positions. LIFFE January 05
wheat futures are now £5/tonne higher than the contract low seen
in September.
The HGCA Haulage Survey shows rising rates across the UK, for journeys
over 150 miles a rate increase of 10% over 2003 levels has been reported.
The increased demand to move wheat from the south to the north and higher
fuel costs are contributing factors.
European Harvest
The falling US dollar and high European freight rates have made French
grain more expensive to export compared to US origin. This has lowered
prices in advance of expected export demand to African countries next
month. Winter wheat plantings in France and Germany are forecast to
be above last year.
International Harvest
The International Grains Council (IGC) raised world wheat production
by a further 1 million tones to a record breaking 618 million tonnes
after taking account of higher volume crops in the EU, Russia and China.
Wheat plantings for the 2005 harvest were seen as rising by 3 to 4
million hectares. The UK would seem to be standing alone, plantings
having fallen by roughly 10%.
|
