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London wheat traded down 30p on 2015 crop and down 55p on 2016 crop.
Port and consumer shorts coupled with meagre farm sellers have supported UK domestic prices. Low water in the Rhine and questions over Black sea supplies has pushed up expected U.K wheat exports to 1 mmt by Christmas but there is a substantial tonnage of imports to shift.
U.S markets were quiet yesterday, registering a very low volume of trade with wheat slightly weaker. Mexico bought 1.44 mmt of corn (old and new) and commercial interest indicates current low prices are provoking demand. Maybe it is case of ‘best cure for low prices is low prices’.
With funds short any global supply issues will have increased impact.
U.S. $ has nearly reached a 12 year high against basket of currencies, European events and expectation of a rise in U.S. interest rates saw U.S investment, however the strong $ has negative influence on $ denominated commodities.author: Joe Beardshaw