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Wheat trade is very quiet, few buyers matched by few sellers; London wheat was 10p down on the Thursday.
Whilst other commodities such as metals and oil had a down day agricultural commodities did well to hold their ground. Continued concern about Chinese growth has been the reason for commodity falls.
Egypt bought equal amounts of Russian and French wheat at the latest tender.
Wheat stocks and supplies are well documented, attention may switch to corn which will become the market leader.
U.S Wheat recovered some of the USDA inspired losses, the trade felt the fall may have been overdone. Funds that are short are nervously monitoring Australian harvest (rain delayed eastern harvest) and crop development in eastern Europe.
Corn continues to come under pressure but how much further is the downside in U.S? World corn stocks are not as weighty as wheat and over 50% of world stocks are located in China. The Chinese corn inventories are forecasted to fall for first time in 6 years.
Liz Truss is due to sign an agreement this week with China that will mean the U.K will become an ‘approved’ supplier of barley to China, possibly provoking export business post-Christmas.
author: Joe Beardshaw