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London wheat closed down £2.45 yesterday as London followed Matif’s losses on Monday.
Sterling lower as chance of ‘No deal’ Brexit increases.
UK and French wheat and barley are at similar levels on export markets, but both undercut by Baltic origin into Denmark and Sweden. There is market uncertainty regarding exports after March 2019, what if ‘No deal’ Brexit becomes reality and export tariffs are implemented?
US markets down, led by soya, markets stay under pressure with big crops looming and tariff restrictions.
First time in a year, US wheat featured in Egypt tender. Egypt bought Black Sea wheat, US offer $30 above cheapest offer; US supplies are expensive in nearby position, however they get more competitive in forward positions.
With reduced Russian wheat supplies, exports will get tight from Russia and export restrictions maybe announced; US trade did take note of US wheat featuring.
USDA has Russian wheat production at 68 mmt, Russian estimates were higher; yields in Volga valley region lower than expected due to dry weather which may cause Russia to reduce estimates.
Oil maintains levels supported by weaker $, reduced US stocks and hope of US / Mexico trade deal may increase demand.author: Joe Beardshaw