August 01st

Market Report

Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.

London wheat traded up 70p on Friday but closed down 35p for the week.

Market conflict between bad yields in France and robust results elsewhere – Russia and Black Sea.

French crop rated worst since 2003 despite record area. French wheat quality down 2%, now rated 42% good to excellent; 77% this time last year.
Imports likely to rise, France normally imports c. 200,000t premium quality milling wheat; but quality will be helped by carryover stocks of 4.9 mmt, Matif wheat values have climbed by 7% since July 1st

Encouraging German wheat harvest results, as are early UK reports.

World grain production for 2016-17 increased by 20 mmt to 2.046 billion tonnes, within 1 mmt of record high set 2 years ago; demand also increased to exceed 2.0 billion tonnes. Wheat increased to 735 mmt (increase in Russia and US); Russia forecast to harvest 69 mmt. Increased wheat use as competitive to corn.

US markets stabilised on Friday, soya showing a bullish reversal as commercial buying appeared. Weaker $ also helped ag coms, bearish US GDP figures compared even to EU sector.

Argentinean wheat planting delayed by rain.

author: Joe Beardshaw