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London May wheat closed up 75p at £151.75, November 20 was down 45p at £157.30. The spread between old crop May 19 and new crop Nov20 is c.£6, this is not enough to cover cost of storage and finance and does not make it viable to carry old crop into new. UK new crop wheat is trading at a higher level than French wheat and therefore uncompetitive in export market.
French wheat up c.€ 2 on old crop as export demand helps sentiment.
Relatively cheap maize overhangs the market but UK wheat not featuring in export mix
UK planting progress is regional specific however current weather allowing for a lot of activity
Sterling uncertain of direction whilst election in progress; financial analyst forecast sterling $1.10 - $1.45 range until result known (currently £ / $ c. 1.29)
Yesterday betting odds pre debate were, conservative majority 4/9, conservative minority 6/1; labour majority 6/1, liberal democrat majority 200/1, with conservative – labour coalition 300/1
Most seats, conservative 1/20, labour 10/1, liberal democrat 50/1
US markets were slightly firmer.
Wheat up due to lower winter crop ratings and rail strike in Canada increasing hopes for exports, also French wheat firmer
Corn harvest 76% complete against 5 year average of 92%; corn crop unknown with still considerable quantity in field which may not get cut until later / at all? author: Joe Beardshaw