The Agriculture and Horticulture and Development Board (AHDB) is reporting that UK feed wheat futures rose by £3.35/t on June 1.
This follows the decision by Russia to prevent fully laden Ukrainian grain ships leaving their ports in the Black Sea.
“The day ended with wheat closing at £184.25/t,” commented AHDB’s Anthony Speight.
“This is for new season crop; November 23 futures.
“The situation in the Black Sea remains fluid. The deal struck between Russia, Ukraine, the United Nations and Turkey, to allow the export of grain through the Black Sea ports was renewed at the end of May for two months.
“But Russia is now looking for greater international market access for its fertilisers and grains exports.”
Feed wheat prices
The recent price hikes were also mirrored in the United States and Europe.
Meanwhile, the Joint Coordination Center (JCC), established in Istanbul to oversee the management of the Black Sea Grain Initiative has confirmed that it is now impossible to draw up boat inspection plans.
This is being attributed to the refusal of the Russian delegation to register incoming boats for participation in the initiative.
Currently there are 50 vessels waiting in line for inspection in Turkish territorial waters. They contain 2.4 million tonnes of food, including grain, which is destined for 10 countries.
Some vessels have been waiting for JCC inspections for more than three months. Russia is also blocking the port of Pivdennyi as part of its current action.
According to the JCC, a total of 33 vessels departed Ukrainian ports during the entire month of May. This is half the number registered during April.
Only three of those ships departed from Pivdennyi, one of the three Ukrainian ports covered under the Black Sea agreement.
Ukraine exported a total of 1.3 million tonnes of grains and other foodstuffs through its Black Sea ports during May, half of what was achieved during the previous month.
Continuing delays in exporting grains from Ukraine through the Black Sea raise the prospect of many of that country’s farmers not having sufficient facilities to store new season crop.
Previously, this had led to large quantities of grain, produced in Ukraine, being dumped in neighbouring countries – including Poland and Romania.
Previously, the EU had agreed to drop all import levies on food imports from Ukraine. This was to facilitate its onward shipment to other markets around the world.