Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.
London wheat finished £2 down on Friday but up overall for the week; £1.40 old crop and £0.55 new crop. May – November spread slightly reduced to £12.05.
US markets fell sharply having seen soya rise $1.80, highest in 7 weeks. The scale of the rise has surprised the market, soya underpinned by meal demand (China?) and possible quality problems with South American quality.
EU wheat crops are all looking potentially good, the only exception is Poland where winter crops lost will be replaced with spring wheat. French wheat area at 80 year high but production is estimated down compared last year’s exceptional yields; French wheat currently rated 91% excellent same as this time last year. Germany wheat put at 26.10 mmt down 1.7% but still above 5 year average.
Russia forecast to have record yields and Ukraine crops improving but wheat area is much reduced.
Whilst wheat is looking good cold wet weather is delaying corn planting; France only 11% planted against 47% last year - drilling is 2 weeks behind normal.
Sterling continues to recover as speculation about Brexit reduced with one poll indicating only 20% possibility of exit vote.
Brent crude remains above $45 barrel.
UK land prices fell 3% first quarter of 2016 due to Brexit fears, low commodity prices and CAP payment delays. author: Joe Beardshaw