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London wheat closed up on Friday 75p November 20 (£163.70) and +45p November 21 (149.70). London wheat didn’t quite see the same level of momentum as experienced by the French market, even though 685 lots went through in four AAs on May21, which skewed the day’s volumes. Trading was stronger towards the end of the week, Nov20 managed to finish £1.05 higher on the week.
Today has so far seen increases of between £1.80-£2.00, on the back of weather concerns in the US.
The UK’s harvest was said to be 47% complete on Tuesday, after rapid progress for the preceding fortnight, says the AHDB.
French wheat closed at a 2 week high, largely due to technical buying and dry conditions in Argentine wheat areas and buying demand eg Egypt.
Egypt again bought Russian wheat, Russia and Baltic states cheapest origin and could take some traditional French wheat homes such as Algeria.
German wheat crop a reasonable 21.48 mmt and Poland up 5% compared 2019 at 11.75 mmt.
French corn rating down 65% good – excellent, down from previous week of 74% as hot dry weather impacted crop.
US markets mixed; some traders questioning USDA corn acres, saying they could be overstated by 1 million acres.
The Derecho / hurricane storm last week did some crop damage, 14 million acres in Iowa suffering, damage yet to be assessed.
Japan, the World’s third largest economy, announces 7.8% GDP fall in April – June, this would equal 27.8% drop for year if trend continues: Japanese economy was struggling before pandemic pressure.author: Joe Beardshaw