A tale of two stories between old and new crops. Dry weather is still reported across much of Western Europe. Will US tariffs be implemented next week? Big brother might be watching you soon.
Filtered by subject: Futures
Attention moves to the November wheat futures. Chicago July wheat futures touched 16-month highs. Weather in the Ukraine could damage crops. Soya prices remain volatile and the story behind the Plimsoll line.
UK May wheat futures have been trading weaker as the May contract comes to a close. The rail strikes in France caused some logistics delays. Delayed spring plantings gain pace in both Europe and the UK. Program your robot to build an Ikea chair or invest in a wearable chair?
The physical price remains pretty stable day to day, with currency and political developments being the main drivers in longer term, though the actual price level depends on the north-south distance from Hampshire. La Niña is being blamed for the dry conditions in Argentina as well as Brazil’s wet Mato Grosso state, which is delaying its harvest. About half of the UK’s 900 KFC outlets have no chicken. Not so finger likin good!
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’.
Every harvest year is different to the previous, but this one is unique. As we have reported for several months there is a North-South divide, with wheat in the South valued at about £140/t, in Cheshire about £10 more, and the North-West at an additional £7/t!
By the end of the week, the November position closed at the slightly higher level of £142, maintaining the 'firming tone'. When priced in €, UK November (feed wheat) futures is about €4-5 less than the December Matif (milling wheat) futures.
The wheat market is focussed on the weather, politics and currency, and in the background the record short position of the funds is threatening to come to the fore.