Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.
UK May and Nov wheat had big gains on Monday but the market has lost some of that increase on Tuesday, net gain C £4. May 20 wheat £163.50, £8 gain over the last 4 days of trading, Nov 20 £173 £5 gain over the last 4 days of trading.
GBP is having a recovery, this may curb continued wheat gains.
Matif wheat has continued on an upward trend over the last 5 days, increasing by C €8 but has dropped by €2 on Tuesday.
Malaysian palm oil futures climbed as much as 4% following the news that three of the major producing districts had a number of employees testing positive for Covid 19, this bolstered gains in other oils. EU rapeseed imports have totalled 4.75Mt so far this season, a 45% increase Y/Y. Concerns still remain over demand for the oilseed in the coming months in regard to the demand for biodiesel, as well as cooking oil. With restaurants now closed across Europe demand for cooking oil will be signi?cantly impacted.
U.S. ethanol producers are on track to shut about 2 billion gallons of annualised output by the end of this week because of a slump in demand for fuel, the head of the Renewable Fuels Association trade group said.
Biofuel producers are feeling the impact of an energy industry in crisis as countries including the United States take unprecedented steps to contain the coronavirus pandemic, curbing demand for products such as gasoline and jet fuel. –RFA spokesperson said ‘it looks to us like we’re nearing 2 billion gallons of capacity on an annualized basis that was operating as recently as a month ago that we think by the end of this week will be offline’.
Markets were temporarily spooked by an announcement from Russia regarding the suspension of grain exports but, later it was clarified only relevant to processed grains, such as buckwheat.
US weather is forecast to be wet for the coming spring, if this is correct, it will mean another difficult corn planting period. author: Joe Beardshaw