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London wheat was up c. 50p yesterday as sterling fell. Sterling fell to a 2 week low on the back of a budget that gave a gloomy economic forecast. Sterling / euro currently €1.2675, in November it was €1.40+; Brexit continues add pressure.
UK wheat exports have been put at 310,000t, although some Jan exports will appear in Feb numbers. This brings the total wheat so far this season to 1.302 mmt, seasonal barley total 1.036mmt. However seasonal wheat imports are 1.014 mmt and maize 1.157 mmt. Weaker sterling will help export programme.
US wheat markets fell, dryness in the plains has become stale news and the predicted cold weather is not as bad as anticipated. More importantly (possibly), delays in corn planting are due to wet conditions in corn areas, this means later crops will be pollinating during hot period which can have major impact on yields; but still months away!
Egypt bought French, Romanian and Ukrainian wheat at recent tender. Offers were less and prices were higher due to the ergot situation.
Oil recovered losses as US stock pile is less than previously thought, OPEC have announced a meeting for the 17th April the meeting is expected to focus on how to curb production.
author: Joe Beardshaw