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London wheat closed down yesterday, November 20 – 10p (£166.15) and November 21 - £1.20 (£150.40), however the market opened and traded C.£1 higher for most of the day. Over last week, November 20 was + £2.65 and November 21 + £1.90.
French wheat reached 3 week high due to demand for French grain from China, it also resisted bearish factors from increased Russian wheat crops and the expectation of large Australian and Canadian crops; analysts / technical traders commentating support at 182.20 euros and resistance at 184 euros.
Support in the market came from potential weather related problems in Argentina and French maize ratings good to excellent fell from 65 to 62 over the week (similar rating to this time last year)
Russian wheat exports increase with greater tonnage coming forward. 2020 estimated production figures have been varied but recent information has indicated that crops in Siberia, the largest producer of spring wheat, are in the worst conditions since 2012.
During July, China bought just under 1 million tonnes of wheat, up 325% year on year, biggest suppler was Canada with 36%
US markets saw corn up on dry weather concerns but wheat was down
Funds are long soya despite a large crop looming; some doubt USDA forecast, yields are too high after recent weather
US corn and soya is cheapest origin so should gain whatever demand appears author: Joe Beardshaw