November 20th

Market report

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

London wheat closed up 80p on Friday, but down c. £1 for the week.

EU wheat price was 3 euros down on the week.

UK wheat balance sheet looks tight, despite lack of exports as domestic demand is up but closure of Vivergo for maintenance eases some of the pressure. Reduction in bioethanol prices brought forward maintenance closure; Vivergo would use c. 800,000 tonnes year.

US markets all had an up day Friday, especially soya, which saw meal prices rise following increase in soya oil due to increased commercial buying.

Commodities in general closed higher, gold up $15 and oil gained 2% as Russia may support / extend production restraint in line with OPEC; weaker $ also helped.

Wheat market still dominated by Black sea / Argentinean supplies.

UK budget due Wednesday which may impact sterling.

Parts of EU (France, parts Germany, Spain and Northern Italy) are all suffering from lack of moisture but Russia is forecast for snow to give protection from winter kill.

author: Joe Beardshaw