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London wheat closed down 25p yesterday as sterling gained strength, according to recent polls the ‘remain’ vote made ground.
At present the wheat potential is not suffering any crop / weather threats and pacific cooling signifies El Nino is over; however cooler pacific could provoke La Nina which would also bring dry conditions to northern hemisphere.
US markets traded initially down and then recovered. Soya supported by meal demand, wheat is at low levels with Kansas city wheat hitting 9 year lows, this may or may not be a resistance level.
Reports that 80% Ukraine soya and 10% corn are produced from GMO seed; Ukraine forecast to produce 5 mt soya and 26 mt corn.
Increased yields (soya 2.17 t/h) created suspicion as domestic feed demand created opportunities; ‘round up ready’ corn seed available. Inclusion of GMO reported by USDA which has implications as China imports Ukraine grain and bans GMO seed.
Oil continues to firm, brent crude + $49 barrel.author: Joe Beardshaw