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London wheat had a quiet trading day on Friday in terms of volume but, May 21 + £2.10 (£185.50) and November 21 + £75p (£158) ended the day firmer.
French markets were also up
USDA report was bearish for wheat but ignored as dry weather Russia, Brazil, Argentina and wet western Europe supported values. The report was bullish for soya with values at 4 year high and stocks 5 year low.
Soya production was reduced lower than expectation, yields kept at record levels but harvested acres reduced.
Corn similar, harvested area down 1 million acres, trade expectation 200,000 reduction.
Danger for soya and corn bull markets, driven by fund buying and creating huge longs, at some stage the funds will sell / profit take.
Demand for soya into China remains strong, especially with US beans at a big discount (80 cents) to Brazilian origin.
World wheat record production at 773.08 (up 2.59 mmt), demand 751.03 (from 750.09) and stocks at 321.5 mmt.
Wheat imports into UK 218,000 tonne in August, Bulgaria and Germany were the main suppliers but Canada largest supplier for season so far.
Argentina is the first country to approve a GMO wheat variety that is drought resistant. author: Joe Beardshaw