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London November 18 wheat closed up £1.25 on Friday, the market closed up 55p on the week. London markets followed global wheat market trends, wheat gaining value in US and Europe.
There is a bullish sentiment to wheat, all the major global wheat exporters having weather / production concerns : US, Europe, Black Sea, Australia and South America. Corn stocks are also forecast to reduce due to the issues with planting.
Last season the Russian Rostov region accounted for 13% of Russian wheat production (10.8 mmt) but this region currently has the lowest levels of soil moisture since 2013; only received 50% of expected rainfall in the last 30 days and temperatures between 2 – 4 degrees above average growing conditions. However, rain is forecast and crops still look well, but not as good as last year.
US markets were up due to combination of weather and politics. Corn, soya and sorghum all supported by reports that China and US had reached a trade agreement and reduced tariff threat. Wheat was up; Kansas wheat up nearly 20 cents as state of winter wheat crop has provoked buying demand.author: Joe Beardshaw