Commodity price trends: March 2017

Commodity pricing data supplied by Mintec

UK milling wheat

£145 / mt

Month on month: +3.6%

Year on year: +27.3%

UK wheat prices are up as a result of a decline in production, compounded by strong demand from the milling industry due to the high quality of the crop this season. Production in the UK for 2016/17 is forecast at 14.5m tonnes, down 12% year on year, resulting from a decline in the production area and yield. Total wheat consumption is forecast up 4% year on year at 15.5 million tonnes during the same period.

     

EU milling wheat

€171 / mt

Month on month: +3.2%

Year on year: -1.0%

EU wheat prices have risen month on month over concerns that severe cold weather in Eastern Europe between December and January may have damaged crops for the 2017/18 season.

     

EU sugar

€670 / mt

Month on month: +3.1%

Year on year: +32.7%

EU sugar prices have continued to increase, due to tight stocks. Although EU sugar production is forecast up 13% year on year at 16.2m tonnes this season, consumption will be higher than production at 18.8m tonnes, exceeding production and dragging down stocks. As a result, sugar stocks for 2016/17 are forecast down 75% year on year at 0.3m tonnes.

 

Canadian milling wheat

CAN$240 / mt

Month on month: +1.9%

Year on year: -0.6%

Canadian wheat prices have risen, as a result over concerns that unfavourable weather conditions in Alberta may have damaged the winter crop. Meanwhile, growing conditions for crops outside of Alberta were favourable.

EU SMP

€2,108 / mt

Month on month: +0.2%

Year on year: +29.7%

EU SMP prices were stable in January, despite uncertainty over the current volume of supplies in the private intervention scheme. Prices have been weighed down by low international demand for EU SMP, as a result of high EU prices. However, this was offset by tight SMP supplies as a result of cold weather across Western Europe, which limited milk deliveries in January.

EU butter

€4,318 / mt

Month on month: -3.3%

Year on year: +56.6%

EU butter prices started to decline in January, driven by a slowdown in demand and an increase in volumes being released from the Private Storage Aid (PSA). Current high prices have reduced the demand from buyers purchasing large volumes, weighing down on overall prices. Butter production fell 5% year on year in November, due to a decline in milk fat availability and a current preference for producers to sell cream.

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