UK - A record 641.9kt of wheat was milled in the UK in September, according to DEFRA data, up 112kt from the previous month and 16kt higher than the previous record set in September 2012 (which includes ethanol and starch producers), writes Arthur Marshall, Analyst, AHDB/HGCA Market Intelligence.
Top quality domestic milling wheat supply is anticipated to be tight this season, despite the larger UK wheat harvest.
Only a small proportion of group 1 wheat has achieved full bread wheat specification, which the market will have to ration.
Reflecting this, UK full-spec bread milling premiums over feed wheat have been stable at around £40/t since September, both for current and forward delivery.
Demand may not yet have responded to these price signals sufficiently, with lower wheat prices than last season likely stimulating usage.
Steady milling premiums since September offer no reason to expect a change in usage patterns to date, adding further pressure on already tight supplies. The recent stability in milling premiums may be premature.
TheCropSite News Desk