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London May futures closed down £2 on Friday (£149) and £9.20 down on the week, November 20 closed up 30p (163.80) but, £5.20 down on the week. Old / New crop spread is gradually improving the viability to carry stock. May 20 futures contract will turn technical as the FND is Friday 24th. London November 21 also +30p (£148.80).
Markets continue to react hope v’s pessimism over virus situation.
Sterling currently 1.1482 / .8709p against € and 1.2481 against $.
US markets also mixed but US oil price reaches 21 year low as demand reduced and storage limited for ‘glut’; this is despite OPEC cutting production by 10%. Ethanol production, intrinsic to oil, has been a vital source of demand for U.S. corn ever since the Renewable Fuel Standard (RFS) came about in 2005, which mandated the use of renewable fuels in transportation fuel . Almost 40% of yearly corn use in the United States is devoted to ethanol under normal circumstances. Feed and residual use also typically account for nearly 40% of annual U.S. corn consumption, while exports take up only about 15%.
Significant rains are forecast in parts of the US that will hold up potential fieldwork in the Delta and Southern states. Also, other areas experiencing below average cold weather.
French wheat rated 61% good to excellent (last week 62%); spring barley 78% (last week 84%), Maize 25% planted.
French wheat supported by Egypt buying 180,000 French wheat Thursday (also 60,000 Russian) but, domestic demand has reduced and end of season stocks are forecast up. There is demand from Jordan and South Korea but this is likely to be South American corn
Russia will suspend grain exports until July 1 if its exports quota, set at 7 million tonnes for April-June, is depleted earlier, Oksana Lut, the Deputy Agriculture minister, told reporters on Friday. The quota is currently expected to be depleted in mid-May, and there are no plans to increase it, Lut said. If Russia's grain exports are suspended, there will be no exceptions for certain companies, she added.
Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.author: Joe Beardshaw