July 24th

Market report

Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.

London wheat closed up on Friday 25p but showing little change on the week, unlike European wheat with matif wheat closing €6 down on the week.

French quality / protein good, French production estimated 36.6 mmt (27.6mmt 2016 crop), roughly in line with production average 2008-15. Yield average forecast at 7.12 t/h, this is 3.6% below 2008-15 average.

Early UK wheat results ‘encouraging’. Nationally, winter malting barley quality is good - average nitrogen’s but variable screenings. Early spring barley results are mixed, some good results in East Anglia but early days. UK feed wheat is presently too expensive for exports and milling premiums may come under pressure if quality is good and high % of group 1 & 2’s planted.

US markets were mixed, corn sharply down despite hottest temperature of the year and momentum appears to be stalling. Soya showed some resilience and wheat continues to suffer from hot and dry conditions.

IMF reduced growth forecast for UK and US, UK growth reduced to 1.7% from previous 2.0% and US reduced to 2.1% from 2.3%. European growth increased and global growth 2017 estimated at 3.5% and 2018 3.6%
UK and US start trade deal talks.
US allowed to ship US rice to China for first time ever.

Oil prices down as production reduction has not drastically cut supplies, Nigeria and Libya increasing production.

author: Joe Beardshaw