UK trades/markets

As the harvest draws ever nearer grain prices continue to slide. With ideal growing conditions across much of Europe a bumper crop is in the offing.

Strategie Grains are sticking with their estimate of a 15% rise on the year for the European Union's soft wheat output to 128.3 million tons. But their analytical report added that the crop could still come in anywhere up to 144 million tons depending on the weather over the next 6 weeks. That would be a whopping 30% increase on 2007.

LIFFE wheat futures have fallen over £50/tonne since late February, with May down £9.50 this week alone.

Compounders are reporting cheap grain offers suddenly emerging from the woodwork and as a consequence are backing away from their buying ideas from earlier in the week.

Jun/Sep wheatfeed pellets ex South East mills traded yesterday at £115, yet today I'd have at least half a dozen sellers at the price. There's a bid in the market today at £113 reportedly, I'd like to see it! £100 here we come? I think so.

Remember all the hype around crude oil when it broke through $100/barrel, and the guy that bought it said he'd done so just because he wanted to be the first to trade it in three figures. Who's going to be the first to be able to buy wheatfeed in double figures this year? I think it might happen sooner than you think.

Spot Corby material reported done today at £117.

Buyers wanted. Buy now before it gets any lower!

Is that the wheatfeed market I can see down there?