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Yesterday London wheat fell again as weaker sterling failed to halt the slide.
Sterling fell below $1.40 for first time since May 2009,and with speculation it may fall to $1.35.
Sterling also fell against the euro, currently 1.26 / 79p, although euro also weaker against $ due to Brexit situation.
International monetary fund is ‘positive’ about UK, but there are risks and uncertainties: global growth, sluggish UK production, household debt, Brexit. Carney even hinted interest rate cuts.
UK markets not helped by latest Defra wheat numbers, production increased from 2016 harvest by 273,000 tonnes to 16.444 mmt (largest since 2008. Consumption reduced by 111,000 tonnes to 14.660 mmt due to reduced livestock feed demand. More imported grain into the UK has increased surplus by 415,000 tonnes to 3.964 mmt, up 38% year on year.
US markets are down, led by falling wheat markets due to rain improving US wheat crop prospects. Corn supported by increased ethanol production; mineral oil also firmer.
Russian wheat area is down 3% for 2016 crop, export taxes have curtailed production. Ukraine production is also down, exports from eastern Europe will be reduced 2016 crop.author: Joe Beardshaw