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Friday was a quiet day on the market with Chicago only open a half day due to Thanksgiving, however the short session ended on a positive note.
In China, cereals prices are soaring and the government sold about 670 000 t of its wheat state reserves on the domestic market. China is the main driver of the current bullish trend on agricultural prices.
In wheat, 795 800 t have been sold at the end of week on November 19, according USDA. This is well above market expectations. Same scenario for the corn with 1.665 Mt exported.
On the bearish side France wheat area should expand sharply this year and production levels should be more in line with averages. In its weekly report, FranceAgrimer said that 96% of autumn wheat is in good to excellent conditions vs. 75% last year to date. 94% of the winter barley is considered as good to excellent.
More locally we've seen an increase in winter wheat area, seed sales are much more buoyant than the rest of the Autumn with growers only thinking of one crop. If the rain comes through later this will this have an effect with on more wheat plantings? The temperatures across the UK are certainly starting to look a lot more like winter.