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London wheat closed down 70p yesterday, May 20 closing £155.25 and November 20 £164.30
New spell of wet weather stifles selling pressure as uncertainty of next 2020 crop prevails
Sterling shows little movement with Brexit due this Friday.
US markets are down as virus turns sentiment negative, emotional markets tend to be volatile ones!
Deaths attributed to virus now pass 100 but, to put things in perspective, 1% of world population is 75 million, health fear dominating sentiment.
EU wheat exports are up 69% year on year, top sellers are France, Romania and Germany and top destinations Algeria, Saudi and China. Saudi buys 900,000 tonnes of barley for shipment March – April but, not impacting UK barley markets.
Weather will continue to be an important factor, world wheat stocks are reduced but still above 10 year average.
EU and Black sea account for 33% global wheat production and EU third biggest.
Wet weather in western Europe (France 410 mm rain September – December against 10 year average 260 mm) has seen winter wheat plantings down 5%, smallest crop forecast for 17 years. Western Europe shortfall is compensated by increased area in Russia and Ukraine but, some areas are dry; spring weather will determine if area becomes production reality.author: Joe Beardshaw