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London wheat closed down £1.35 as yesterday’s after USDA report was perceived bearish.
US markets, especially corn and wheat, fell post USDA report. US corn yields increased (expected to be cut) and world wheat production was increased when most analysts had forecast a reduction (261 mmt from 258 mmt); Russian crops were increased. Soya also had a bearish report but values held up as funds bought on the rumour of new Chinese trade talks.
Scepticism of USDA reports increase; suggestions of political motive, but reports still have impact on markets and sentiment.
Canadian crops having suffered drought and now face very wet weather and even snow; 25% wheat harvested and19% canola), this may not affect yield but quality e.g malting barley.
US approaching Hurricane Florence has been downgraded but damage is still expected.
French barley stocks at 11 year low.
Oil reached year high, Brent +$80 at one stage but currently c. $79, low US stocks and reduced Iranian supplies the reason.
Gove announces new farm bill for next 7 years, promising high environmental standards.author: Joe Beardshaw