December 24th

Market Report

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

Not surprisingly the markets are very quiet, London 15 crop unchanged but November 16 up 40p; the spread between May 16 and Nov 16 is currently £7.95.

London supported by weaker sterling (1.36 against euro) on the back of disappointing economic numbers.

For the first time in 3 years Egypt bought Argentinean wheat in latest tender, undercutting French wheat by $10. This may be due to the change of government in Argentina, removing export restrictions and also a weaker currency; Ukraine supplies did not feature in the tender and appear to be tightening.

MARS, the European crop bureau, stated European crops could be vulnerable to a cold snap, recent mild conditions have not made them frost tolerant; no cold weather forecast.

Cofco, the Chinese state owned agricultural trader has increased its global profile by buying Nobel agriculture; they are active in 29 countries, employ 9,500 and have annual sales of $14.9 billion.

Oil recovers slightly and OPEC predicts $70 barrel by 2020 href="" class="nlink">

author: Joe Beardshaw