FEED WHEAT

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Old crop wheat prices continue to drift lower. End-users seem well covered in May and June with only limited requirements still to purchase. A prospect for a bumper new crop is also seen weighing on prices.

EU prospects are also improving by the day as confirmed increases in area and favourable weather conditions point to a marked recovery in crop production. The Association of German farming cooperatives yesterday estimated the 2008 German grain harvest at 46.72mmt, up 15% on last year (wheat at 23.9mmt, up 16%).

US corn plantings increased last week, but are still behind last year's and average planting pace. The window is closing for the 'optimum' planting period re yield, but like last year we expect planting to continue throughout May and even into early June. This may reduce yield potential, especially in the later sown plantings.

Weather looks the only threat to record global and increased EU and UK production. With increased production also seen from the Black sea region, and therefore, increased export availability, expect markets to remain under pressure into and through the harvest position.

OILSEED RAPE

New contract highs in crude oil and the ongoing labour dispute in Argentina have combined to push the US soya complex higher again this week.

The rally in crude oil has been the main feature of the market in recent days – Iran’s refusal to allow international inspectors to view their nuclear facilities, the general perceived tightness in short term crude oil supply and issues surrounding the availability of diesel fuel are helping to push prices higher.

With the rally in the diesel market, bio-diesel producers are seeing a recovery in their margins and consequently have been back in to buy rapeseed oil - pushing new crop seed prices higher.

Despite this recent rally we still expect to see the market come under particular pressure in the harvest position with crops across Europe and the Eastern block looking really well. In the UK growing conditions are just about perfect at the moment with warm sunshine for the next 10 days combined with good soil moistures - if anything the crops are getting better not worse and with a big wheat crop in the pipeline the need to move rapeseed at harvest could result in some downward pressure come the time.

FERTILISER

As crop development stages move on, attention should turn to fertiliser regimes on quality crops, with milling premiums at £20/tonne plus for this coming harvest - Protein Plus application on all milling wheat's should be considered.

Protein Plus trials over a ten year period have showed an average increase in grain protein of 1.1%, consistently giving better results than applying ammonium nitrate.

Applied at the same time as late fungicides and insecticides it is also available with Sulphur helping to overcome the increasing problem of the Sulphur shortage now seen in most areas.

Newly developed Oilseed Extra has also produced some impressive yield gains on Oilseed Rape crops; this is now a standard procedure in Germany where yields are consistently better than the UK.

A unique formulation developed after an intensive product development programme and by reference to trial resources throughout Europe.

Designed to rapidly boost the nitrogen content of Oilseed Rape during the critical pod establishment stage, increasing yields by greening the crop through pod fill.

Gleadell are expanding OMEX distributors and your Gleadell Farm Trader would like to discuss both products with you today.