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London wheat closed up 70p yesterday, but on thin volume. Sterling fell against euro and $ as chances of No deal Brexit deal increased.
US markets up, especially soya, as dry weather impacts Brazil and assumption of exports increased, but government shut down has meant no official data available. Technically, soya finding support from trading in an ‘ascending triangle’ where each low is above the previous low; however there are still plentiful soya supplies.
Both oil and stock markets reached their peak on October 3rd, since then, DOW Jones has fallen 15% and oil 40% due to world growth concerns, is this the market low? The danger is, grains have fared well in comparison and could provoke index fund selling, unless threats to production threaten abundant supplies.
Russian wheat exports accelerated first half December, but are expected to slow.
author: Joe Beardshaw