June 22nd

Market Report

Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.

London wheat closed up on November 20 + £1.35 (£165.85) and November 21 + 50p (£151.50) but down on the week by c £1 on both Nov 20 and Nov 21.
French wheat also closed up after recent falls.
Sterling down as borrowing levels and economic recovery did not make good reading; public debt now exceeds economic output for first time since 1963, when World War 2 was still being paid for.
Rain in Europe consolidated crop condition but reduced crop size is expected and next 7 day European forecast looks very warm.

French wheat ratings are stable for the third week running, wheat 56% good to excellent, winter barley 52%, spring barley 54%, maize 83%, all unchanged from previous week.

US markets had corn and soya up but wheat is down.
Chinese trade talks in Hawaii have been well supported, China pledging to honour phase 1 agreement and buy corn, ethanol and beans.
Wheat is down as winter wheat harvest progresses, although rain in Kansas
Vegetable oil up as crude prices increase, economy improves and China and India low on stocks
Soya spread above corn increases and with big corn crop due this may extend further
Next USDA report 30th June will give stock numbers

World wheat stocks are looking to reach a new high by mid-2021, this is with or without the inclusion of Chinese production. Chinese stocks continue to increase, it will be the eighth consecutive year of producing more wheat than it uses. It is also a point of note that production increases are largely not coming from the northern hemisphere exporting nations.

author: Joe Beardshaw