November 26th

Market Report

The Thanksgiving holiday meant the markets had very little direction, French and UK wheat markets traded down before recovering later in the day. Overnight the oil markets have been smashed dropping 5% on the fears of the new African variant of covid that seems to be highly contagious and and unknown. Markets hate uncertainty and this will add a sentiment to the wider markets who are dreading any further lockdowns.

In other news France has cracked on with its wheat sowing and is well ahead of last year with current drilling at 99% good conditions. UK drilled wheat looks good but its the rest of the world where our attention needs to be. Australia will have a large crop but will it be feed or milling and currently more feed wheat seems to be the answer.

That leaves Russia where conditions are dry but rains are coming and they will be desperate to drill wheat to keep food price inflation down. The troop build up on the border of Ukraine is continuing and a spat in the black sea region would really spook markets.