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London wheat closed up £1.75, benefiting from a weak sterling (1.1645 / .8588 against euro) that suffered from negative economic news (trade deficits / government bonds).
French wheat crop now estimated at 28.68 mmt, exports projected down 60% to 5.81 mmt from last season’s 12.81 mmt; for first time ever, France will not be Europe’s biggest exporter, it will be replaced by Germany. The void of French exports are likely to be replaced by Russia or even US.
First UK wheats are of good quality and pleasing yields but the ‘bulk’ of the crop are unknown as yet.
Rumours are that Egypt has rejected Russian wheat cargo on quality issues.
Wheat production of Baltic countries are forecast down 9.5% year on year, this is largely due to heavy rains seen over the last 3 weeks.
With wheat harvest underway, attention is switching to corn, reports are that French corn yield maybe reduced by recent heat.
Australia is anticipating a bumper wheat crop as rains fall in east. Considerable rain fall has been attributed to strengthening la Nina; big Australian harvest coincide with la Nina influence.
Brent crude c. $44 barrelauthor: Joe Beardshaw