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London wheat closed down 50p on old crop and down 25p new crop due to sterling strength and negative world markets.
Sterling rose with euro currently worth less than 85p as UK economic data shows support.
USDA report yesterday published bearish numbers but wheat actually closed up as there was some short covering rally. South American production at the high end of expectations (Brazil soya 111 mmt) and certainly much higher compared to this time last year. Soya traded at one year low; will this impact US planting intentions?
UK wheat supply / demand situation remains tight, especially if there are new crop problems.
Whilst plentiful global stocks weigh on sentiment due to ‘Good’ global harvests, the market remains nervous with an expectation, due to probability, of potential future weather threats. Although not critical yet, Europe is experiencing dry condition; conditions in eastern Europe need to be monitored.
Brent crude traded over $56 barrel, OPEC and non OPEC nations (e.g Russia) reduced supplies in March by more than they pledged.
Certain Japanese crisp brands have suspended production following the worst domestic potato harvest for 34 years. author: Joe Beardshaw