November 02nd

Market Report

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

With the UK heading into lockdown, will we see a similar week to what we experienced back in March? Will we see another £14 p/t sell off? Crude oil is plunging as lockdown measures weigh again on oil consumption levels. France, Germany, UK all now fully locked-down. The fate of the US will be determined by the election result - Biden for a Lockdown and Trump against. We should know the Election result by Wednesday morning. The polls are showing Biden in the lead - this will add uncertainty into the markets. How accurate are the polls and will Donald pack his bags on Wednesday if asked to do so?!

According to FranceAgrimer, 66% of winter wheat sowings in France had been carried out by 26 October against 45% the previous week, in corn, 88% of the area has been harvested, compared to 77% the previous week and 60% to date last year. Rains in the US is adding to the pressure on wheat markets, whilst only 41% of the crop is considered good to excellent. On Friday, funds were net buyers in 3 500 lots of corn and 3 000 lots of soybean. They were net sellers in 4 000 lots of wheat.

Our view - we expect markets to remain nervous over the expectation of the US presidential election.

author: Josh Dewing