Archive: Pressure on UK feed wheat shifts buying focus to spot market

Published 10 September 14

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As a result of high levels of global grain production we have witnessed downward pressure on crop prices as we enter the 2014/15 marketing season. With spot market prices for cereals hitting new lows, prices on offer for forward delivery months are at a premium on both a UK and global scale. As such, dairy farmers could benefit from current low prices by purchasing future feed requirements on spot markets rather than buying forward. It will however be important to continue monitoring cereals’ markets, especially as we enter into the spring of 2015, in order to be able to identify when this relationship changes.

A more detailed analysis of feed wheat price relationships can be found here. Spot and futures prices can be monitored on the HGCA website.