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London wheat market is static, gained 5p on Wednesday and then lost 5p yesterday; only 33 lots traded yesterday, indicating market apathy. Wheat market are still confused, exports are not happening, surplus not coming forward and frustrating domestic demand; there are supplies in the south but appear tight in the north.
UK old crop feed barley is still in demand but new crop ‘fob’ prices are down c. £4 as sellers lowered expectations.
Sterling gained strength; May ‘applauded’ by EU, which probably incites the Brexit hardliners. The recent lost vote in UK means negotiations are far from straight forward.
2017 Eurozone growth raised to 2.4% from ECB 2.2% forecast, some analysts forecasting euro to gain 10% against $ in next 12 months; currency who knows?
US markets mixed but last week soya challenged 4 month high, now though it continues to slide as favourable south American weather sees funds trying to reduce long positions. Wheat has gained due to dry conditions in some areas, improved export numbers, commercial buying and funds trying to cover short positions.
Fed under Yellen’s final announcement raised interest rates 0.25% - as expected
Signs of La Nina continue to strengthen, pacific ocean temperatures are decreasing. This effect is likely cause cold north US, dry south America and wet Australia. Possibly major effect could be increased energy demand in north America pushing up oil, gas etc
Argentinean wheat armada loading 220,000 destines for Algeria and other north African destinations, which are traditional French export destinations. However, progress is delayed by port strike in Argentina.author: Joe Beardshaw