Nearby UK feed wheat futures prices fell below the £150/t mark this week for only the third time since late-2011.

This is according to DairyCo, which also reports that prices on LIFFE wheat futures closed at £147/t on 27 May, continuing the downward trend seen in recent weeks.

It says the fall was fuelled by the easing tensions in Ukraine and encouraging planting and crop condition reports from EU and US. The falls in UK futures have mirrored declines seen in wheat markets worldwide, with US futures down over 4% on the week.

DairyCo which is a levy-funded, not-for-profit organisation working on behalf of Britain’s dairy farmers highlights that the market will now be looking towards the next USDA report – due June 11 – for further direction and many GB dairy farmers will be hoping that the current trend continues in order to keep downward pressure on feed costs.

It cautions many of the Northern Hemisphere feed grain crops are currently building yield so remain sensitive to any weather issues that may occur over the coming weeks.