February 03rd

Market Report

Yesterday saw another sell off day across the board on wheat. The US led the markets down and this has continued overnight. Again the continued lack of Russian action in the Ukraine giving strength to the bears and global demand still fairly quiet. London wheat was down another £3/mt. There is still a lot of uncertainty in the weather systems and the world is not assured a big crop. The Aussie wheat crop is still weighing heavy in the southern hemisphere.

Oilseeds saw another good rally yesterday in Soybeans but French OSR still lagging a bit which is surprising given how little is still out there. This market remains the most volatile and the EU needs all the OSR it can get to keep the crushing plants going.

Sterling has managed to hold onto its strength which still looks odd against the state of the economy. Brent oil is off its highs but still at staggering levels. This does look under pressure with ethanol stocks at all time highs so the US will need to get this shifted.