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London wheat closed fractionally higher, but with USDA report published at 5pm UK time, market reaction was limited.
USDA report was mixed, bullish corn and bearish soya and wheat. Post report, corn rallied to 6 month high, South American production and US demand has increased. US exports, which had been very slow, will improve as exports increase to fill Argentinean deficits, although Brazil is on course for a big crop. Global wheat production was increased and consumption reduced.
UK wheat area predicted down 2% for harvest 2018 and if yield is at or below 5 year average it could be smallest crop since 213-14.
Global wheat production 2017-18 record 758.2 mmt but demand is increasing and stocks to use ratio of 36% is reduced from 10 years ago; stocks to use ratio difficult to assess as China holds significant amounts. World wheat area not changing so production very dependent on yield, increasing impact of weather threats.
US winter wheat poor condition, Kansas 50% + rated poor / very poor and 76% area topsoil moisture is short / very short
Asian markets rallies on news Trump to meet Kim Jong-un.
US imposes steel and aluminium import tariffs escalating trade dispute author: Joe Beardshaw