July 26th

Market report

Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.

London wheat continued to rise, Nov 18 closing £5 higher. French wheat also higher, Strategie Grains cut EU wheat production for second time in 2 weeks.

Early reports suggest UK wheat yield is better than anticipated but the poor yields are not reported and futures continue to rise. The sentiment is that domestic consumers are covered in nearby positions but still have to cover forward. There is little or no demand to ports due to no exports, ‘spot’ wheat struggling to find homes.

Ensus has bought as far as December and using imported wheat and corn, Vivergo plan not certain. Imported tonnage may reduce the premium to the north and not drag wheat from the south.

US markets, especially wheat, gained as US trade wakes up to problems in EU, combined with concerns in Australia, Canada, Russia.
Corn supported by wheat, especially with low world stocks and increased demand. Spring wheat yield surveys indicate yield forecast below USDA predictions.

Egypt buys 420,000 tonnes wheat at highest price since 2015.

Feed barley prices firm as demand increases and UK barley competes in export markets; differential to wheat narrows.

author: Joe Beardshaw