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London November 16 wheat closed up £1.85 on the day, but did reach +£2.65 at one stage before retreating. Combination of crops and currency giving market impetus.
Rain in France has seen rapeseed forecast yields reduced 4.9% compared to last year (although area +1.2%) and barley yields reduced 6.1%. Wet weather and associated problems has provoked this cut and wheat likely to follow.
Russia, Ukraine and Black sea also suffering excessive moisture with concerns on yield and quality. Russian wheat prices have risen as the saying ‘rain makes grain’ appears to be ignored
US markets also up but soya’s rise has slowed. Corn demand is good due to Brazilian crop concerns; funds buying to reduce wheat short as wheat cheap alternative to corn.
Reports of drought in mid-west due next month; USDA report due Friday which may give market direction.
Brent crude trading over $50 barrel at levels last seen November 4th 2015.
Sterling recovered slightly but remains under pressure, poll has 45% out and 41% remain.
$ reacts to vague comments by Yellen of no time scale for interest rate rises; weaker $ beneficial to agricultural commodities. author: Joe Beardshaw