Bloomberg News

Gleadell Loads 25,000 Tons of U.K. Milling Wheat

April 13, 2012

Gleadell Agriculture Ltd. is loading 25,000 metric tons of U.K. milling wheat for shipping to Algeria, with another cargo of the same size to be sent next month, Managing Director David Sheppard said.

Loading of the Handysize vessel Falcon Trader at grain trader Gleadell’s Immingham terminal on the east coast of England’s Humber Estuary is expected to be completed today, Sheppard said by phone. Another 25,000 tons will be loaded in May, he said.

Gainsborough, Lincolnshire-based Gleadell is a joint venture of Hamburg-based grain trader Alfred C. Toepfer International GmbH and Paris-based cooperative Union InVivo. The U.K. wheat being loaded for shipping to Algeria was sold by Toepfer in the past three months, Sheppard said today.

“It’s great for farmers because the milling wheat premiums over feed are through the floor,” Sheppard said. The sale to Algeria allows U.K. farmers to get a better price for milling wheat over feed wheat, he said.

The grain was “competitively priced on the day,” according to Sheppard, who declined to give financial details.

The April and May shipments follow a 25,000 ton cargo of U.K. milling wheat in November, according to the director. Supplies from the U.K. have become uncompetitive, meaning further sales in coming months are unlikely, Sheppard said.

“I don’t think U.K. wheat today is particularly competitive, the London May contract trades 4 pounds ($6.36) above Matif,” Sheppard said, referring to the Paris milling wheat contract. “We have no freight advantage, the quality is no better.”

Loading 25,000 tons of wheat at the Immingham facility takes about 3 1/2 days, according to Sheppard.

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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