Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.
London wheat closed up 80p yesterday following last week’s £2.25 rise; much of this rise attributed to weaker sterling. For comparison, Paris wheat was up 0.75 euro (c.65p) on week.
UK wheat has been supported by a lack of farmer selling and Ensus (bio fuel) demand for wheat, prices in the north east are becoming a premium market; this will mean wheat is hauled further north. Trade is assumed short of November futures, there could be rush to cover shorts especially if physical hard to buy.
French corn harvest is due to start, yield is anticipated to be further reduced.
US markets higher, especially soya which responded to firmer soya oil / vegetable oil, markets which are close to 2 year high. Wet weather delaying US corn harvest causing shorts to look nervously at their short positions.
Australia still expecting big wheat crop but quality may suffer as la Nina gains power.
EU wheat quality down this year, estimated 29% milling quality against 41% last season.
Egypt, the world’s biggest wheat importer, has failed in its last 3 attempts to buy wheat, zero tolerance on ergot deters sellers. author: Joe Beardshaw