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London wheat closed almost unchanged having recovered from early losses. UK wheat demand to the north remains frustrated by a lack of supplies coming forward and increasing the prospect of more imports, if European supplies become offered / available.
US markets reacted sharply and lower on the news of proposed Chinese import tariffs on soybeans amongst other products and market panic spread to stocks , energy and livestock markets. Markets then recovered as the falls were seen as a buying opportunity; tariffs are not yet imposed and Chinese action was seen as retaliatory if US imposes sanctions. Sanctions do not increase availability of global soya supply and if China switches to Brazilian supplies you could see US beans exported to Brazil - done before!
Market stability indicated Dow opened 1.75% down closed up 1%.
Fundamentals in US remain bullish on weather markets, freezing temperatures in southern plains and drought is still a concern in certain areas.
Lingering winter in Russia is slowing spring planting, progress is 2 weeks behind and well behind comparable time last year, only c. 1% planted of intended spring crops. Shorter growing season will impact on yield and spring crops are significant to overall Russian production.
French market supply suffering from rail strikes and high water levels.author: Joe Beardshaw