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London May 20 wheat closed down on Friday £1.25, £156.10; November 20 down £1.50 at £167.70 and November 21 £1.50, £152.10. However, London Wheat still posting gains on the week, May 20 £7.10 higher and Nov20 £3.45 higher. The main focus has been the weather and continues to bring volatility to the markets.
Sterling currently unchanged against euro but, slightly up against $.
Rain is expected for Western Europe and Poland, if this also reaches Black Sea and wheat growing regions of Russia, it will put further pressure on global wheat markets, this impact has already been seen towards the end of last week when rain was forecast.
Possible Russian export restrictions are continuing to provide fuel to increase prices but there are questions if this is overdone due to potential rain.
US prices are lower as markets take a time out; corn near to $3 and funds are short, how much more can it fall? Any change in weather, legislation and travel would make an interesting market.
Weekly French crop ratings fell again, wheat 58% good to excellent (61% last week), winter barley 57% (60% last week), spring barley 69% (78% last week ), and maize crop 52% planted.
Ukraine grain production may fall to 60 mmt, last season 75 mmt, a number of factors directly and indirectly to blame: weather / economy /virus, however prices may be supported by talk of export restrictions.
Argentina forecast to harvest record wheat crop, growers switching to wheat to avoid possible soya export tariffs. author: Joe Beardshaw