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Yesterday, London November 17 wheat closed up 60p.
US markets retreated after recent rises with better weather (rain) forecast. However, corn remains in an uptrend and spring wheat yield is forecast at less than 40 bushels (last year average 47 bushels), rain forecast maybe too late; stocks tightest for 20 years.
Soya plantings could equal corn acres which will be revealed in USDA report June 30th; wheat and corn bullish, soya bearish.
French wheat crop nearly 1 week ahead due to conditions, possible early harvest. Recent French crop tour of barley crops indicated average quality and yield potential due to drought, frost and recent heat. Spring barley 10 days ahead of normal.
UK wheat crops benefitted from recent weather and some estimates talk of 15 million tonne crop.
Russian spring barley area smallest since 1970.
US FED raised interest rates 0.25%, this should strengthen $; strong $ is traditionally bearish to agricultural commodities. Sterling has found some stability; c. 88p against euro as election result is digested but Brexit negotiations could exert further pressure.
Threat of glyphosate ban; according to experts (chemical companies!), if implemented it could see a 20% reduction in UK wheat crop and 5% fall in barley. author: Joe Beardshaw