UK: Combined wheat and barley exports hit highest monthly level since November 2011 in February

Combined UK wheat and barley exports hit the highest monthly level since November 2011 in February, aided partially by currency movements, FarmingUK reported on April 29.

Nevertheless, uncertainty around future exchange rates combined with factors such as the price carry and UK price competitiveness will have a bearing on the level of grain stocks the UK will carry into next season.

It is no secret that this season the UK has a large wheat and barley surplus for either export or to carry over into next season.

The latest supply and demand forecasts estimate the combined surplus of wheat and barley in the UK at 6.8 mln tonnes.

So far this season (Jul-Feb) the UK has exported 2.85 mln tonnes of the grains, leaving 4 mln tonnes (or 60% of the surplus) to either export from March-June or carry over into next season.

Since the end of December and moving into 2016, sterling has weakened considerably against a number of currencies, including the euro and the US dollar.

This has aided UK cereals price competitiveness and helped boost exports over the past few months.

Furthermore, in February, combined wheat and barley exports totalled 512.5 thousand tonnes, the highest combined level since November 2011.

29 April, 2016