Bloomberg News

U.K. Corn Imports to Fall on Wheat Used as Feed, HGCA Says

November 16, 2011

(Updates with corn in headline and first paragraph.)

Nov. 16 (Bloomberg) -- U.K. corn imports are forecast to drop 11 percent in the 2011-12 season as farmers cut back on using the grain for feed in favor of locally grown wheat, the Home-Grown Cereals Authority said, citing government figures.

Corn imports will slide to 904,000 metric tons from 1.02 million tons a year earlier, based on cereal demand and supply data published by the HGCA on its website today. U.K. wheat availability will slip on greater feed use, the HGCA said.

London-traded feed-wheat futures are down 27 percent this year, compared with a 20 percent slide for Paris corn and a 2.4 percent decline for malting barley in the French capital. U.K. feed use of corn, barley and oats are all forecast to fall.

“Wheat usage is expected to increase at the expense of barley due to current price relationships,” the Kenilworth, England-based HGCA said. “Wheat imports are expected lower than last season due to the increased availability and good quality of the U.K. wheat crop.”

Feed use of wheat will rise 4.9 percent to 6.45 million tons, according to the cereals balance sheet. That may cut wheat availability by 61,000 tons to 17.85 million tons even as U.K. production rose 3.3 percent to 15.4 million tons.

The U.K. wheat surplus available for either export or to build stocks will drop to 2.72 million tons from 2.83 million tons in 2010-11, according to the HGCA.

--Editors: Claudia Carpenter, Sharon Lindores

To contact the reporter on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.


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