May 28th

Market report

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

London November 19 wheat closed up on Friday at £151.75 and has opened higher this morning.
French wheat markets were open yesterday and traded higher.
Sterling close to unchanged despite election results and continued political turmoil.
European election results were mixed, nationalist gains in France, Italy, and Hungary; will this have negative impact on euro?
EU – Italian dispute continues, EU possibly imposing 3.5 billion euro fine on Italy for not reducing debt, deficit should be below 3% of GDP and debt under 60% of GDP; EU has never fined a country yet.

US wheat and corn markets closed higher Friday as wet weather continues, corn 65% planted by Sunday and US farm package not fully understood.
Grain futures up 11% so far this month; funds remain short but it should be noted, South America have large corn crops and weak currency making them aggressive sellers, farmers selling to get finance.

Chinese corn futures highest level since 2015 as deficit increases, production reduces and demand increases. Corn area down as growers switch to other crops and swine fever reduces meal demand but increases corn demand for alternative meat products.

Debate over size of Russian crop, some forecasts suggesting 80+ million tonne wheat crop. Agricultural ministry predicts 75 million ton crop due to problems in Volga valley, previous 78 mmt.
USDA has 77 million tonnes estimation, 75 million would still be second ever biggest crop.

author: Joe Beardshaw