Average UK corn returns prices rose to record levels in 2007/08 with feed wheat prices reaching a peak of £183/t in March 2008, while prices for malting barley soared to £210.90/t in February.

Average ‘07/08 UK bread milling wheat prices were close to £180/t, almost double the ‘06/07 average of £93/t (Table 1). Other milling wheat prices also nearly doubled to an average of £163/t (£89/t in ‘06/07). The average UK feed wheat price rose by £54/t (60%) on ‘06/07 to over £150/t, peaking at £183/t in March ’08. The price rises reflect last season’s tight wheat availability worldwide. World wheat production reached 611Mt, remaining below consumption for the second consecutive year. The UK crop fell to 13.24Mt, the lowest since ‘01/02.

Malting barley prices increased by 109% in ‘07/08 to £181/t, compared to just £86/t in '06/07. Prices rose to £191.20/t in September ’07 and continued to increase steadily to almost £211/t in February ‘08. The average ‘07/08 UK feed barley price rose by 73% on the '06/07 average to £131.60/t, with prices remaining relatively stable after the sharp rise in September 2007. Milling oat prices ranged between £102/t to £109/t during July-January ‘07/08 and averaged £108.40/t for the season (£80.70/t in ‘06/07). Feed oat prices rose to an average of £107.4/t.

UK grain prices rose sharply last season. This was in response to the tight supply globally and generally in line with the higher prices seen on world markets. Prices, however, started to ease in the last quarter of ‘07/08 as it became apparent that farmers across the globe planted more grain for harvest ’08. In expectation of a much larger crop, current prices are much lower with the current monthly feed wheat price for August ‘08 at £120.60/t.

See www.hgca.com for more detailed regional price information.