Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.
London wheat fell 15p on Friday but registered gains of 15p for the week. The May – November spread remains £13.50.
UK markets supported by sterling weakness, UK industrial output down 0.5% in February and thus putting pressure on economic performance. The British Chamber of Commerce predicts UK economic growth has ‘softer feeling’. Weaker sterling will help UK exports but there remains plentiful supplies available in Europe.
French wheat rated best in 5 years (wheat 92% good to excellent, winter barley 91% ). Compared last year, French winter crops are ahead in crop development but spring barley 59% emerged compared to 88% this time last year.
US markets firmer with soya supported by meal prices lifting and more expensive Brazilian soya supplies due to currency. Spring wheat area in the US is down 15% (11.3 m. acres v’s 13.25 m. acres) whilst still concern about moisture deficit in winter wheat areas.
Egypt starting their domestic harvest; the Egyptian government has announced ‘corruption in wheat sector will be tackled’. Domestic prices are at premium to world prices as government try to protect domestic production but buyers look at cheaper available imported supplies.
Oil prices up 6% as stocks reduced and increased expectancy that April 17th talks in Doha will achieve production freezeauthor: Joe Beardshaw