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London wheat closed down 95p on Friday but still showed £8.05 gain for the week. Differential between November 18 and November 19 currently £18.85.
Despite interest rate rise sterling remained week due to Brexit situation.
EU wheat had the highest weekly close for 4 years as markets responded to rumours of possible Ukraine wheat export ban; Ukraine ministry denied information and raised their wheat estimate to 24 mmt from previous 22-23 mmt with the message ‘keep calm’!
Latest UK wheat estimate is 13.5 mmt, potentially lowest crop for 5 years (last year 14.8); yield average coming in at 7.6 – 7.8 t/h against 5 year average 8.2 t/h.
Demand for animal feed is at high levels, hot weather has suppressed grass growth adding to the impact from the Beast from East.
Bullish sentiment continues, hot dry weather has reduced French maize crop ratings, even though damage is limited it has fuelled sentiment.
US markets are quiet, attention is focused on Fridays USDA report, cuts to wheat and corn crops are anticipated but US insulated from global conditions as their crop ratings are reasonable. author: Joe Beardshaw