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Harvest Update - Wednesday 12th October 2005
UK Harvest
• Marketplace continues to want to talk about the lack of farmer
selling, and it appears that is the case in North America too.
• LIFFE has broke out of it’s range for November options with
recent high of £69.50.
• Feedwheat interest has been prominent in the west of the UK into
next crop year.
• Keeping in mind that acreage reductions of 5-10% seem likely
for next autumn harvest, premiums are being quoted at higher levels
next year due to potentially lower crop and competition from increased
feedwheat demand in the west.
• Stronger euro and dollar (11 week highs for $) have increased
the price of quality imported wheat.
European Harvest
• Still a lot of focus on the reduced winter wheat plantings likely
to occur in the Ukraine due to very dry conditions.
• German E premiums holding steady while coaster freight may have
some upside in the coming weeks.
• Free market refund at euro 8.00 (as at 6/10/05).
North America
• U.S. DNS premiums holding firm.
• Ocean freight slightly firmer for winter months.
• MGE futures holding near recent highs, but technically look positioned
to break out of narrow range.
• Good moisture in U.S. plains for winter wheat crop.
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