February 10th

Market Report

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

London wheat closed up £1 on Friday, May closing £154.25 (up £2.50 for the week) and November £162 (up £2.20 for the week).
Sterling, very slightly weaker.

US corn, soya and wheat all closed slightly up. US corn is cheapest in global markets and caused some fund shorts to cover position.
US wheat is up on rumours that China has bought French wheat (8-10 cargoes) and may come for US supplies; French exports to the Far East are already progressing well.
Beans are up in a hope that China may buy, phase 1 deal probationary period due to expire 15th February when buying may occur; bean exports up 6% year on year.
US market rises have been restricted by stronger $ but, it is seen as a safe haven reference to coronavirus market nerves.

Brazilian Real is at it’s lowest level since September 18th 2019; weaker Real is causing the Brazilian beans to be even cheaper, added to which they have an anticipated record crop.

The EU’s top wheat destination Algeria has approved Russian wheat on quality, enabling potential Russian imports.

OPEC wants to cut oil production as price falls due to reduced Chinese demand, Russia has not said it will follow but, will announce policy in the next few days.

author: Joe Beardshaw