UK wheat continues to flow to the near Continent as end users seek alternatives to poor quality French supplies.
Gleadell recently loaded the MV Lady Astrid with 3000t of wheat destined for direct delivery inside mainland Europe, one of many coaster-sized vessels that the company has shipped this season.
The grain was shipped to Rotterdam then discharged into smaller barges and delivered via inland waterways to the customer’s plant in Belgium.
Gleadell trading director Jonathan Lane said: “The ability of Gleadell’s shipping team to facilitate this door-to-door service was key to making this business work.
“The geographic position of Great Yarmouth makes it an ideal place to originate and ship wheat to near-Continent customers.”
Disappointing wheat yields and higher internal demand has eroded the UK’s exportable surplus this campaign by 50% compared with last year, said Mr Lane.
“However, the quality of the crop has provided some opportunities. The UK has sold wheat again in tenders to Algeria and the much-reduced crop and mycotoxin issues in France have also provided some new market outlets for UK wheat to the near Continent.
“The weaker pound has also helped the UK ethanol sector and CropEnergies’ Teesport plant has run since July, adding approximately 650,000t of wheat demand to the market.”
Exports that were carried out were largely executed in the first half of the campaign, but as domestic demand has started to bite the internal market is now priced at a level that will protect supply and prevent any large-scale exports, Mr Lane said.
“Import wheat volumes are likely to be maintained at similar levels to last year. This higher domestic demand and lower production will see the UK’s stock situation fall back from historically higher levels back to a more normal 1.8mln t, but will leave the UK with little room for error with next year’s harvest.”
For further information contact
Jonathan Lane, trading director
01427 421221 | firstname.lastname@example.org