UK Wheat Prices Set to Rise

It has been a volatile season for wheat in the United Kingdom. First, prices rallied on a historic heat wave, which contributed to the country’s fourth warmest summer on record. Later, prices receded when strong rains replenished water-starved fields, as exemplified by evapotranspiration anomalies returning to near normal levels. Yet more recently, prices have rebounded on news that the summer’s abnormal weather has negatively impacted wheat quality and milling yields. Coupled with increased consumer and ethanol demand domestically, the UK is expected become a net importer for only the second time in two decades.