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London wheat closed up 45p on 2016 crop and up 25p new crop. The UK supply / demand looks tight; wheat from the south travels north to satisfy demand. Will Ensus continue beyond February and will Vivergo reopen increasing demand. The market has been supported by a lack of sellers. There is a lack of new export trade and limited to domestic demand, will this demand be able to absorb selling if / when it happens?
US markets saw corn up and soya and wheat down; wheat got some support from cold snap threatening wheat plantings prompting some commercial buying. There is concern over Soya, the March soya contract is close to the November contract low; funds are long and if this level is broken there could be panic selling on the back of sentiment change.
Sterling gains slightly on UK economic growth, although continued confusion / uncertainty about Brexit. UK barley at c. £17 discount to feed wheat looks a big differential and could see domestic consumers, where practical, increase usage.
Reports from Ukraine say wheat plants have higher sugar levels in tillering nodes which makes plants more robust and able to survive cold conditions; Ukraine wheat area + 2.2%.
Oil falls from 18 month high as stronger $ and Trump uncertainty affects markets.author: Joe Beardshaw