Overnight the US wheat markets are down with corn and soya slightly firmer. This is crunch week for the brexit negotiations with rumours that the UK is softening its stance in order to ensure a trade deal with the EU. With the PM isolating and Cummings gone Lord David Frost is out on limb and might be forced to a deal he doesn't like.
The good news is the UK has signed a deal with the Ukraine in order to allow 136,200 tonnes of low quality wheat to come in tariff free! Anything over this amount will attract a tariff rate of £79/mt. This would be a big increase on previous years where the UK saw on average 3,000 tonnes come in. How this wheat is produced is a different question. We see more and more pesticides being banned in the EU but this is not happening in the Ukraine so is this a level playing field?
Stock markets are rallying as more potential vaccines come to the fore, sterling is a bit weaker. Wheat market could be lower to unchanged.