January 04th

Market Report

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

Today is the first day back for the majority of the UK after the Christmas and New year holidays. The year 2020 will always be remembered, let’s hope that 2021 is completely different. Hopefully Brexit is now behind us and with the help of the vaccines so can lockdowns.

Dry weather in South America and continuing weakening of the dollar is helping push prices to highs last seen in 2014. Weaker dollar drove U.S. grain exports notably above analyst estimates in week ending 24th December. Argentina has also temporarily suspended export licenses for corn before 1st March to maintain adequate supplies for animal feed demand. The Argentinian Grains Unions continued to strike over the weekend.

Chinese Agricultural Ministry announces pledge to improve locally grown crop yields to help maintain local production.

Indian farmers planted 32.5MHa of wheat as of Jan 1st compared to 31.4MHa last year/ Winter sown pulses and oilseed plantings also increased to 15.5Ha and 8.1MHa respectively (rapeseed at 7.2MHa vs 6.7MHa in 2020).