August 08th

market

Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.

London wheat closed down 45p Friday but gained £1.30 for the week.

French farm ministry put French average wheat yields at 5.57 t/ha meaning a 29.1 million tonne crop; worst since 1980.
French wheat harvest 62% complete, however corn crop rated 71% good to very good versus 58% this time last year.

60% UK barley cut, yields estimated 5.9 t/h – 6.3 t/h against recent average of 6.8 t/h. Oilseed average yield 3.1 – 3.3 t/h (recent 3.6 t/h). Wheat area 1.794 million hectares x 7.5 t/h (estimated) = 13.455 million tonnes (last year 16.44 mmt).

Russian harvest progressing, bumper crop of 70.1 m/t anticipated; Western region quality down to rain increasing feed grade rather than milling.

US markets firmer, despite good growing conditions. Soya up on export sales; China may increase soyameal imports and reduce DDG’s (produced from corn). Problems with western Europe raise hopes of wheat exports to north Africa. Non-commercial remain long in soya. Latest favourable US employment numbers increase possibility of interest rate rise = stronger $= bearish agricultural commodities.

Brent crude trading c. $45 barrel

author: Joe Beardshaw