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London wheat closed virtually unchanged yesterday as stronger sterling was countered by tight domestic supply and little farm selling.
Sterling is c. 89p against euro, the euro under pressure and was sold after Draghi comments. US election and continued Brexit negotiations will mean currency is likely to remain volatile.
The weak sterling has significantly assisted UK export growth, speed and volume of orders has been the highest for 2.5 years.
US markets saw corn and wheat down but soya is up as a result of vegetable oil market. The recent rise in US wheat prices has been due to shorts reducing / buying back their positions; short positions in wheat have been cut by nearly 50% in the last 2 weeks.
Third wheat boat in UK loading for Algeria with fourth also due. Black Sea wheat prices are up as are global corn prices; UK wheat should be underpinned by relatively weak sterling and good quality.
Whilst UK values have improved there is still a world glut of grain in stocks, although a lot of this stock is in locations that make verification difficult (China, Russia etc).author: Joe Beardshaw