Wheat Market Update - Sideways Movements

Tuesday 17th December 2024

Welcome to this week’s market update! Each week, we'll delve into the market movements and key factors affecting wheat prices. Whether you're a fellow industry professional, a supplier, or simply interested in what’s happening in the market, our updates will offer valuable insights to keep you ahead of the curve.

Market Report

Limited news last week with a mostly sideways movement on prices. Domestic demand remains lack luster, helped by the large quantities of imported milling wheat continuing to flow into the country. The pace of UK wheat imports to October 24 is currently 80% higher than the average for the same period over the last five years. Domestic milling wheat premiums delivered to Ponders End / Harlow are now at £40 per tonne.

The USDA published its December WASDE report but contained minimal changes to the world’s wheat balance sheet.  However, they did reduce world production of corn by 1.5 million tonnes whilst increasing consumption by almost 8 million tonnes, reducing year-end stocks by 7.6 million tonnes from their November report. DEFRA published their final estimates for 2024 UK cereal and oilseed production with wheat production sitting at 11.146 million tonnes, a 20% reduction year on year.

Argentina’s Rosario grain exchange increased its 2024 wheat harvest estimate by 0.5 Mt to 19.3 Mt due to improved wheat conditions as the harvest is reported 58% complete. In review of the last 15 years, this would make the 2024 harvest the third largest, behind 2021 and 2019. 

It is also reported that Australian wheat production has been revised upwards by 0.5mt. The EU MARS crop monitor puts most European winter crops in mainly fair to good conditions with the exception of Romania, Bulgaria, eastern Ukraine, and some parts of Russia