The extreme weather last year, hit production and quality, ramping up the need for imports, while reduced plantings for the 2013 harvest look set to bring in a shorter crop this season.
In terms of the impact of this on price, by moving from a surplus in the UK to a deficit means prices need to realign to restrict export competitiveness and stimulate imports, it said.
“Although this results in a noticeable change in the domestic prices, it is relatively small considered against the volatility of the world market,” said Jack Watts, senior analyst at Agriculture & Horticulture Development Board (AHDB).
The forward price for a delivered tonne of wheat in Northamptonshire, in June 2013, currently stands at around £201.00 per tonne (p/t).
In related news, UK wheat availability has been revised upwards, by 275Kt, to 17.29Mt, compared to March 2013, however it is a 2% decrease on the comparable period last year, according to Defra’s latest 2012/13 UK cereal supply and demand estimates.
It noted that the increase was entirely due to the hike in the import estimate, to 2.54Mt, from 908Kt in 2011/12.
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