Markets continued their decline on Friday in the wake of perceived demand destruction. Fundamentally little has changed, Ukraine has carried on drilling crops but it is unclear how these will be exported. Weather conditions in France are still not ideal and wheat is suffering but this has been the case for the last two weeks so the market already priced this in. UK crops are progressing well and with rain coming this week should continue to look good.
Overnight US markets have rallied on very little news but following three days of drops the market will eventually find some buyers. The dollar has also weakened quite significantly over night and this will add to the competitiveness of US commodity exports and provide additional support to their market.
India is still enigma for the World wheat trade and there international trade policy leaves many people bewildered. In times crisis you need stable decision making to give markets confidence especially around food policy.