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UK May and Nov wheat closed down on the week C.£2, and has taken another drop in this morning’s session, presently May 20 £147 and Nov 20 £157.50.
Matif wheat closed the week C. €2 down but has taken a significant drop of €4 this morning. However, 20/21 harvest has been revised and due to the recent rain has led to a reduction in forecasted yield from 7.34 to 7.25t/ha taking 340kt off production to 33.44Mt (39.57 Mt in 2019/20).
US dollar has weakened, sterling has also come down but is only slightly lower over the week.
USDA WASDE report tomorrow, general sentiment is bearish but we will have to wait and see!
Goldman Sachs and other major banks such as Morgan Stanley have cut their demand growth forecasts, with Morgan Stanley predicting China will have zero demand growth in 2020. Goldman sees a contraction of 150,000 bpd in global demand.
Crude Oil has had one of its worst falls on record, down 34%. OPEC had decided to curb oil production but Russia announced it would continue at present levels. Saudi Arabia have now decided to increase production in an effort to punish Russia. author: Joe Beardshaw