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London wheat closed up £1.50 on old crop and up £0.90 on new crop.
Sterling was weaker, inflation slowed in October, this has reduced chances of possible rate rise and reports about Brexit ‘chaos’ has had a destabilising effect.
UK wheat, even at current sterling rates, are being undercut by Baltic / Black Sea origin, this is also being coupled with cheap corn supplies.
There are big boats due to load in UK pre xmas from previous business; the supply / demand situation looks tight into new year.
US markets had a turnaround Tuesday, corn, soya and wheat all up. There are heavy corn stocks, will any rally be sustained long term, especially if $ firms?
Speculation about Trump effect; infrastructure spending and possible tax cuts will help economy.
Whilst European wheat stocks are getting tighter there is still plenty of wheat in rest of world.
Oil firms up as OPEC again talk of limiting supplies but it is doubtful they will want to drastically reduce oil income.
author: Joe Beardshaw