December 07th

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, on average, down 60p yesterday but with little activity. Sterling undecided as Brexit negotiations stumble along.

US markets down, especially wheat (5 month low), a reaction to Canada raising wheat crop from 27.1 mmt to 30 mmt, this was unexpected after summer drought. The reaction backed up by non-commercials / funds going long, which could see selling stampede.
Soya, after recent rises, saw 2017 market highs reached, but hesitant as South American weather is being watched; La Nina blamed for dry south America and wet Australia.

Russia gains markets into S.E. Asia and Middle East; traditionally supplied by Australia. Russian wheat up to $100 cheaper than Australian in certain grades.

Oil falls 2.7% as good gasoline supplies in US may mean less demand for crude / refining.

author: Joe Beardshaw