February 24th

Market Report

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

London wheat futures followed other wheat markets down, old crop down £1+ and new crop down c. 75p.

With little bullish news (no weather concerns/ plentiful supplies) values were not helped by lower stock markets and falling oil prices, down 5%.

UK markets will be aided by weaker sterling which continues to suffer due to Brexit situation, some polls put a winning exit vote at 40%.Sterling currently at a 7 year low against $; Goldman Sachs are talking of $1.15 if UK votes to leave EU.

US markets also suffered big losses due to lack of bullish news and slow exports; US wheat closing at 5 year lows.

Ukraine wheat production for 2016 estimated 30% (17.3 mmt) down before any weather problems; production down reduced area and poor crop condition. Unplanted area likely to be spring planted with corn & sunflowers

One commodity firming up is sugar, up 9%; rise attributed to reduced supplies and world deficit, production reduction forecast down in EU.

author: Joe Beardshaw