Frontier Agriculture Ltd., the U.K.’s largest grain trader, said its feed-wheat pool obtained a base price of 180.16 pounds ($283.55) a metric ton for grain shipped in the fourth quarter.
Top-quality milling wheat obtained as much as 30 pounds a ton on top of the base price, the Witham St. Hughs, England- based trader wrote in a report on its website today.
Farmers can sell grain collectively through pool systems such as the one managed by Frontier to increase their marketing clout. U.K. farm-gate prices for feed wheat were about 135 to 140 pounds in October 2011, when farmers committed grain to the pool, Andrew Flux, grain-procurement manager at Frontier, said by phone today.
“The pools take some of the risk out of selling that exists if you trade everything on an open market,” Rob Hayward of Cousins Farm Ltd. was cited as saying in the statement. “I’ve always used the pool but this last year more than ever and that’s because the market is so volatile.”
London-traded feed wheat futures have climbed 28 percent in the past 12 months, with March-delivery wheat closing at 214.40 pounds a ton on Feb. 1.
Frontier’s harvest-pool price for wheat sold at harvest time in August and September was 174.09 pounds a ton. The trader obtained a feed-barley pool price of 171.41 pounds a ton for grain shipped in the fourth quarter, it said.
Frontier is a joint venture of Associated British Foods and Cargill Plc. It employs more than 800 people and has a 25 percent share of the U.K. grain market, according to its website.
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