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London wheat closed down 85p yesterday as sterling gained strength and export demand remained thin.
Sterling found support (3 month high) as UK economy is showing resilience post Brexit and export trade has benefited from weaker sterling.
Debate about size of UK wheat crop ; whilst quality has exceeded expectations, lack of farmer selling and stores not filling indicate lower yields.
French corn yields reduced 3.6% due to dry weather and crop ratings down; 40% of French corn is irrigated.
Lack of export demand is illustrated by Egypt not buying at latest tender and Syria postponed.
US markets drifted; soya has been the market driver but is close to significant resistance levels at $10.25. Wheat exports are better than previous season.
Some investors predicting agricultural commodities are investment opportunity against other commodities such as gold.
author: Joe Beardshaw