Grain price: LIFFE wheat drops amid Brexit vote; MATIF holds firm

On Wednesday, the LIFFE wheat price for January dropped below £170.00/t for the first time since November 30.

That drop on Wednesday (January 16), came the day after the crucial Brexit vote in the UK parliament on Tuesday (January 15).

The reason for the drop can largely be attributed to currency movements. The value of the pound (against the euro) rose significantly from the middle of last week and on Friday (January 18) morning stood at £1=€1.13. This makes UK products more expensive in the ‘eurozone’ and, as a result, wheat price has dropped.

LIFFE

LIFFE wheat opened the week at £171.30/t (January 14) and dropped steadily throughout, hitting £170.55/t on Tuesday (January 15), before dropping to £169.30/t on Wednesday (January 16).

A further fall occurred on Thursday (January 17) when LIFFE wheat sank to £168.25/t and on Friday (January 18) £168.25/t afternoon that price remained at £168.25/t.

MATIF

In better news, MATIF wheat for March held strong over the week. It opened at €203.75/t on Monday (January 14) and hit €203.00/t on Tuesday (January 15), before climbing up to €204.00/t on Thursday (January 17). On Friday (January 18) afternoon the price stood at €204.25/t.

CBOT

CBOT wheat isn’t very exciting as of late. It started the week at 514c/bu, dropped slightly midweek and climbed back to 517.75c/bu on Thursday (January 17).

CBOT wheat prices: