August 08th

Market report

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

Yesterday, London wheat closed down 75p despite sterling weakness, Brexit negotiations stumble on.

US markets were up, an important USDA report is due Thursday, this will focus on production and supply / demand. Corn production will be lower due to present weather pattern; soya yields will be reduced but record area was planted.

Australian wheat crop has been further cut to 22.7-22.8 mmt, last year producing 35.1 mmt.

French soft wheat production is up at 36.78 mmt (+34% year on year), average yields 7.15 t/h. Rapeseed production 5.22 mmt (last year 4.74 mmt) average yields 4.74 t/h. Corn estimated 12.76 mmt (2016 11.71 mmt).

Chinese corn deficit put at 9 mmt (previous 6 mmt) as demand out paces production, however this deficit does not include state reserves which gives some insurance; true situation in China never known exactly.

Malting barley prices remain stable, 55,000t French malting barley destined for China.

author: Joe Beardshaw