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London wheat closed down on Friday, May 20 -£1.20 (£150.30), November 20 - £0.95 (£160.30) and November 21 - £0.75 (£147.75). Both old and new crop lost c.£4 over the week.
Currently sterling weaker than Friday levels.
Rain in Europe has diluted some of the weather concerns but medium range forecast is not indicating much rainfall, recent rain has been a major reason for the drop in wheat prices and will continue to drive the market.
Market unpredictability indicated by Warren Buffet lost £40 billion first quarter of this year with Berkshire Hathaway by investing in airlines
US markets are down as tension remains between US and China. US July corn futures tested contract low support mid last week and uncovered substantial short covering and commercial buying interest. The contract lows suggests that $3.09 is a major support point going forward. Weather impact reduces bullish influence.
IGC reduced world wheat by 4 mmt to 768 mmt, consumption estimated up 6 mmt at 766 mmt; but with carryout stocks increased by 6 mmt to 289 mmt, wheat supplies are plentiful.
Corn production estimated 1.157 billion tonnes with consumption put at 1.1738 but, with ethanol demand for corn uncertain, this figure is likely to be reduced and there is also plenty of carryover stocksauthor: Joe Beardshaw