October 23rd

Market report

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

London wheat was slightly weaker Friday, but November 18 values closed above May 18 provoking some selling of crop 18.

Sterling supported by Merkel and Tusk saying ‘negotiation deadlock exaggerated’ as they try to bolster Mays position; both parties need each other and an agreement is necessary but politicians want to gain public opinion credibility.

Catalonia continues to rock the European boat

UK reports smallest trade deficit for 10 years down 11% from 1 year ago

US markets slump as heavy corn yields are reported and prices close to August lows; one area that rose was soya oil, changes to biodiesel mandate. $ up, possible tax reforms anticipated; stronger $ traditionally bearish ag coms.

Spread between Uk and French wheat prices close, if DEFRA’S crop figure of 15.2 mmt is correct, exports will be required.

Black sea wheat continues to dominate markets, world stocks put at record 268 mmt.

Australian wheat production now 20 mmt, but exports forecast are unchanged at 18 mmt; heavy stocks remain after last year’s 35 mmt crop.

Argentina respond to Macin cutting export taxes, corn area up nearly twice the area planted 2010-11.

author: Joe Beardshaw