Feed wheat traded in London has risen more quickly than milling wheat listed in Paris on stronger demand for livestock fodder.
The most-active feed-wheat contract has surged 63 percent since the end of June, beating the 55 percent gain for milling wheat. The U.K. exported 854,000 metric tons of feed wheat from July through September, a 94 percent jump from a year earlier, David Eudall, an analyst with the Kenilworth, England-based Home-Grown Cereals Authority, said today by phone.
Shippers exported 386,000 tons of feed wheat in September, which was “as near to capacity for U.K. exports as you can get on a monthly basis,” Eudall said. Sustained demand for livestock feed may cause feed-wheat shortages throughout the marketing year ending June 30, he said.
“We were cheap compared to the French and had good quality, so that added up to a strong period for us,” Eudall said. “October and November have been busy months as well, so you could see a strong second half of the season for us.”
Feed wheat for November delivery in London gained 1.6 percent last week to 165.90 pounds ($265.12) a ton. The May contract, the most active by open interest, jumped 2.2 percent and today added 0.4 percent to 175 pounds at 12:40 p.m. London time.
Milling wheat for January delivery, the most-active contract, slipped 0.2 percent last week and today fell 0.2 percent to 211.50 euros ($289.08) a ton.
Both varieties of the grain are traded on NYSE Liffe.