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London wheat closed up c.50p on the day but trade was quiet; the rise was a reaction to other market activity.
US market surged led by soya (closed +30 cents) which went up due to flood damage in Argentina (5% loss of crop?) and continued Brazilian political issues combined with good meal demand. Wheat markets were also firmer due to nervous shorts reducing positions rather than fundamentals.
Tenders for wheat exports to Asia (50,000 tonne cargoes) due next few days, this could possibly be sourced from the UK but the deciding factors will depend on freight and currency; sterling remaining stable at just over 79p against euro.
Russia has experienced good spring growing conditions; if potential becomes reality, the world’s biggest wheat exporter could see record crop of 62.5 mmt. Ukraine has also had an ideal spring (moderate temperatures and ample moisture) but reduced wheat area could see exports down 33%. Romanian wheat production estimated down 9% to 7.2 mmt. Bulgaria similar to last season at 5 mmt.
Oil rises for first time in 5 days, Brent crude close to $44 barrel currently.
Oil strike in Kuwait (OPEC 4th biggest producer) and slightly weaker $ gave market support author: Joe Beardshaw