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London wheat was slightly weaker on Friday, this compounded losses for the week of c. £0.50, however Nov 17 wheat is this morning up 95p.
French wheat hit new contract lows, rated 90% good to excellent, down 1% from previous week. This time last year the rating was 92% good to excellent, so there is still plenty of time for things to change; certain areas of France could do with some rain. Putting aside potential 2017 northern hemisphere wheat crop, markets are still trying to digest the world wheat crop surplus of 2016; stocks to use ratio presently at 33%.
Friday’s USDA report saw a big increase in soya area (only .5 million acres less than corn) resulting in soya sharply going down; wheat and corn are up as their area declined. In 1990, wheat had the largest area then corn and then soya, it is now corn, soya and wheat.
Sterling has registered its first quarterly gain against $ since 2015; there is still much debate about currency, the range of views would indicate that no one really knows.
Oil prices improve as stocks reduced and supplies may be curtailed either for political or economic (OPEC) reasons. author: Joe Beardshaw