Friday saw huge rallies in the Ag markets. As ever the CBOT led the charge. Wheat rallied 20cents on the back of news that Russia was going to impose and export levy on grain exports. The UK wheat market saw its biggest one day gain in the last few years rallying by £5/mt. This increase was supported by the rapidly weakening sterling as the Brexit talks seemed to be collapsing. May 21 wheat now trading at new contract highs.
The Russian news gave the markets the opportunity to 'buy the rumour and sell the fact'. The detail of this announcement is yet to be seen and overnight US Ag markets have dropped very slightly.
Brexit continues and with it STG's rollercoaster ride weakening rapidly on Friday to rallying strongly today. This is making markets swing wildly and who knows where the talks will go as it seems the deadline is now 31st of Dec?