Grain price: Brexit causing LIFFE wheat to move slightly
The impact of Brexit could be seen on UK futures this week. The rise in sterling following the announcement of the draft Brexit deal saw prices drop on Tuesday (November 13).
The pound moved up and down for the remainder of the week and with that prices moved – it should be noted that the moves were within a range of just over £3/t on May 2019 prices for example.
The Agriculture and Horticulture Development Board (AHDB) this week showed how the movement in the pound affected the LIFFE wheat markets.
Meanwhile, frost in Argentina is raising concerns for the wheat crop and this led to a rise in Chicago Board of Trade (CBOT) futures on Monday (November 12).
As stated above Brexit impacted UK wheat prices this week, LIFFE wheat for November started the week at £168.85/t. On Tuesday and Wednesday (November 13 and 14) that price finished at £167.20/t. Thursday saw that price rise to £169.00/t.
MATIF wheat for December dropped across the week. It closed at €202.00/t on Monday (November 12). By Wednesday (November 14) it had dropped by €1/t to €201.00/t. Thursday saw it drop slightly again to €200.75/t.
CBOT wheat has been up and down in recent times. On Monday (November 12) it jumped to 519.75c/bu. However, it made its way steadily down towards the end of the week and hit 505.50c/bu on Thursday (November 15).