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Wheat markets suffered a day of losses, the overriding bearish sentiment sucked the life out of the markets. Old crop London fell £1.90 and new crop was down £1.65. London set contract lows for March 16, its lowest levels since June 2010 (£99.75).
Market sentiment dominated by heavy stocks and no weather / bearish factors appearing, although there is still time for crop problems to occur.
UK struggling to find new export business, Russia remaining aggressive sellers due to rouble weakness and lack of ice keeping their ports open. Estimated Russian exports from 2015 crop wheat 24.5 mmt (USDA estimate 23.5 mmt) and corn 4.6 mmt (USDA estimate 3.8 mmt).
Sterling slightly firmer for 4th day in row against euro, investors question extent of the decline due to ‘Brexit’; the bookmakers favourite continues to remain the ‘In vote ‘. Euro still has Greek economic problems to face and UK agitation could spread to other members.
US markets also down on bearish factors with soya beans breaking technical resistance levels and corn trading at new crop contract lows.
French corn area for 2016 estimated 6% down due to bigger wheat area.
Oil continues to firm with funds building long position as expectation production reduction (due to price / voluntary agreement) and demand increasing due to economic stimulusauthor: Joe Beardshaw