European wheat futures fell sharply this week due to a broad sell-off in commodities markets — but feed grain prices continued unusually high.
Earlier this month, in western Germany, feed wheat for nearby delivery in the South Oldenburg animal feed grains market was offered for sale at €239 a tonne last week, compared to €232 for May delivery milling wheat in Hamburg.
The exceptionally cold winter which reduced feed grain exports from the Black Sea, positive European meat sales, and high soyabean prices, have combined to leave feed wheat in short supply.
Feed mills in Germany, the Netherlands, Denmark and Poland have encountered strong feed demand and low supplies.
Many millers had been expecting weak grain prices in early 2012 and were caught out when prices rose — leading to a lot of bread wheat being sold for feed.
