UK, a small producer, sending 61,000 metric tonnes of wheat to US

The US is about to import the largest wheat cargo from the UK in more than two decades as a combination of ample British supply, a weaker pound and rock-bottom freight rates make the unusual trade viable.

The bulk carrier Sbi Lambada is scheduled to depart from Bristol and arrive on May 22 in Wilmington, North Carolina with about 61,000 metric tonnes of the grain, according to data from the North Carolina State Ports Authority. It’s unusual for the US to import large quantities of wheat, not least because it’s the third-biggest exporter, behind only Russia and Canada.

The UK, a far smaller producer, primarily exports feedgrade wheat to other European nations. Never before has it shipped a cargo that large to America, according to customs records dating to 1992. British export sales accelerated in recent months as two years of bumper harvests pushed prices near a six-year low, while a weaker pound boosted the appeal of its supplies.

Its grain has become a competitive alternative for livestock producers after corn prices rallied, said Jack Watts, an analyst at the Agriculture & Horticulture Development Board. “UK feed wheat should be fairly competitive on the global scene,” Watts said. “This is largely being driven by the strength of the corn price relative to the wheat price.” Feed-wheat futures lost 6.1% this year in London and fell below £100 ($144) a tonne in March, the lowest since 2010.