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Yesterday London wheat closed up c. 50p, this was largely attributed to currency, sterling fell against the euro.
Bank of England monetary committee voted 8-1 to maintain interest rates the same; a level unchanged for the last 6.5 years. Interest rate rise has been delayed as the inflation risk has reduced due to slower global growth.
U.S markets were weaker, apart from wheat which defied gravity, it has remaining unchanged despite rain in the grain belt improving prospects.
Corn fell due to plentiful supplies and soya is down on poor export numbers, but remains significantly cheaper than south American origin. USDA report is due next Tuesday.
U.K exports remain sluggish although rumours of 25000t vessel sales persist; however 1 mm tonnes by Christmas remains optimistic. Growers remain reluctant sellers, this is lending some support although November is traditionally a selling month, meaning more physical wheat to move.
U.N food committee said food prices rose 3.9% October biggest monthly rise since Feb 2012, this was due to sugar + 6.2% and palm oil + 17.2% with cereals up 1.7%.author: Joe Beardshaw