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The upward momentum continues with November 16 London wheat closing up £2.20.
Markets are weather nervous; US mid-west has potential drought concerns, quality & yield issues for French wheat crop and conditions in Russia and Ukraine are wet, these are all feeding the bullish sentiment.
US markets are firm, especially soya, but wheat closed at highest level for 7 months. Funds remain active, driving the market before tomorrow’s USDA report.
Chinese demand improves, May’s monthly imports are showing oil up 38.7%, iron ore + 22.4% and copper + 18.6%. Soya imports are up 8.3% on last month and + 25% year on year.
Brent crude has established itself above $50 at $ 52.72 barrel.
Sterling continues to react to latest polls, recent poll showing 43% remain against 42% leave, although bookies still have remain as favourites.
Black grass remains serious problem with UK wheat crops, there is an increasing concern of a potential EU ban on glyphosate.
Egypt rejects Polish and Canadian wheat cargoes due to ergot contamination.
Reports of US crops rotting in fields due to lack of migrant labour as reaction to Trump rhetoric.
author: Joe Beardshaw