Trading on May UK wheat contract picked up; The delay to Brexit saw Sterling fall; US wheat continued to experience selling pressure; New wheat crop prices under pressure across Europe; Soya bean markets slid throughout the week; China still the biggest market for US soya beans.
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Recent DEFRA data indicates that the 2017 crop was about 350,000t lower than previous estimates. Will we again be a net importer in 2018/19? As Russian wheat exports have grown over the past decade, the importance of US wheat exports has declined. Going the extra mile, and finishing by a country mile - how far do you travel?
UK May wheat futures continue to trade within the same tight channel of the last four weeks and lacking any significant change in local or global supply and demand it continues to do so. It seems that the inclusion or exclusion of a comma might be very expensive as a US court case has recently highlighted. Another win for the lawyers maybe?!
The lack of price action recently has been so dull, that the grain trade are acting like door-to-door salesmen in their efforts to try to create a market. They say anything is possible in the USA... A microwaved egg has been the subject of an American lawsuit where a customer bit into an egg resulting in burns and hearing loss due to the massive ‘pop’.
Last Friday, UK May wheat futures closed down £0.60 at £145.65, the same day that Vivergo announced that they were to bring forward and extend their `annual maintenance’ due to low biofuel prices and low profit margins. They also took a swipe at ‘government inaction’ regarding its failure to legislate for E10 (10% bioethanol and 90% petrol).
Despite volatility through the week, week futures rebounded back to £147 by Thursday as the BoE increased interest rates for the first time in 10 years. The Esmeralda sank and was finally located off Oman in 2014, where archaeologists recovered the ship’s astrolabe.
November wheat futures appear to have touched a 5-month low on the 23rd August at £136.55 and in the successive 10 trading days have struggled to rise to about £142/t