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London wheat was down 15p, but on very thin trade.
Demand to the ports coupled with limited farmer selling has seen an increase in physical prices, these prices have not been reflected in futures trading.
Currency has recently been more influential in grain prices and ‘crunch time’ regarding Uk concessions / EU membership, sterling is likely to react. EU reluctant to yield too much ground, fearing it could spread restlessness with other members.
Oil continues to recover up 8%. Venezuela raised its domestic fuel prices for the first time in 20 years, their economy struggles with low oil revenue (premium oil raised from $0.01 to $0.60 litre = 40p).
US markets rise due to stronger oil prices and above normal temperature in southern plains threatening winter wheat; funds are nervous, they are extremely short.
Egypt accepts 0.05 ergot tolerance but rejects Canadian cargo. There has been speculation that the cause of delivery problems is a result of financial shortages. 0% ergot pushed up prices as sellers having to buy expensive insurance against rejection.
Eastern Europe weather continues to conflict with the opinion of crop conditions.author: Joe Beardshaw