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May 20 London wheat closed down £2.25 Friday (£151) and November 20 down £1.20 (£162.05); the change for the week, May 20 down 50p and November up £1.55, but worth noting all on thin volume.
Currency slightly weaker , currently £ / euro 1.1705 / .8544; £ / $ 1.3115
UK new crop is at a small premium compared to Paris wheat.
US markets saw wheat gaining as ‘row’ crops stagnate.
Increasing belief that wheat maybe the benefactor in Chinese trade deal, swine fever has reduced soya demand but wheat still sought after.
US wheat exports c. 1.5 million tonnes over last 2 weeks, this is the highest volume for 6 years, although world wheat still showing heavy stocks, Chinese stocks a matter of debate.
USDA report due January 10th this will define yield and production; bigger area of corn planted and better than anticipated yields after difficult growing season could see corn production not reduced, as some anticipated.
Sterling has started the week stronger against the $ and € but on thin volume and counter to the impact that was seen after the European chief Ursula Von der Leyen spoke to press about the UK intentions on Brexit.
Euro has been supported by short covering but EU economic growth is predicted to be slow.
Russian wheat exports down 13% year on yearauthor: Joe Beardshaw