Britain's cash wheat market saw only minor changes in price this week amid brisk demand around the ports, dealers said on Friday. "Every day, we've got demand on the spot position and I think the lack of farm selling on the nearby is helping to keep the market that little bit tighter. Any grain that is coming out is being drawn straight to the ports," one trader said.
On LIFFE May wheat was trading at 67.75 pounds a tonne on Friday, up 30 pence on the week, while nearby March had added 40 pence at 66.00 pounds.
Dealers said this month's exports might exceed 300,000 tonnes, much of which, was expected to be shipped to traditional buyers in Spain, Portugal and Ireland.
But the market was worried about the pace of February sales.
"The UK is still facing an exportable surplus of nearly 1.5 million tonnes for the (six-month) balance of the year and will be hard pressed to maintain the export pace of this last quarter," one trader said.
Export volumes traditionally fell away after the New Year, another dealer said.
Also seen as supportive was the farm ministry's final figure for 2004 wheat output which, at nearly 15.5 million tonnes, was nearly 200,000 tonnes lower than its initial estimate.
"It means that this year's exportable wheat surplus of 3.1 million tonnes could be trimmed back again," a trader said.
Traders said UK prices would probably hold around current levels until liquidity increased.
"LIFFE fortunes have been listless in directionless trade...(and) there seems to be no real push from either side on the cash market currently," a grain buyer said.
Yet end-user cover was slim for later positions, dealers said.
"I think those consumers who have not bought a lot over the last four to six weeks have woken up this new year and are looking to extend cover. And at these lower levels, a few customers are looking at April-July...that's where it's needed," one said.