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London responded to external markets, closing down on Friday; -15p Nov20 (£163) and -35p Nov 21 (£150.40). The total for the week was November 20 - £2.55 and November 21 -£1.10
Sterling slightly weaker, however potential ‘face to face’ Brexit negotiations may see currency swings influencing wheat market.
Paris wheat set new 3 month low despite EU reducing wheat crop by 4 mmt, down 10.4% compared last year, big global wheat crop looms, Black Sea region, especially Russia, have increased forecast.
French crop ratings are generally unchanged: wheat at 56% good to excellent, winter barley – 1% (51%), spring barley 54% and corn 83%.
French barley harvest has started with mixed reports as worst fields cut first. Russian and Ukraine barley harvest has reported lower yields than last year but better than anticipated as these were weather affected regions.
US markets are down, mainly due to good weather (sun and rain) and increased virus cases; southern states have been significantly impacted by increased number of cases.
Reports of soy bean cargos being exported to China but not enough to challenge bearish sentiment.
Fundamentals are bearish, funds have large short in corn and wheat but any bullish factor could have frantic short covering
author: Joe Beardshaw