Fengrain Update Report

Keep in touch with Fengrain 24/7

Register for regular texts and e-mails 01354 740691 or enquiry@fengrain.co.uk

DJE 10.11.17


10-11-2017

DJE Market Report 10th November 2017

“A week is a long time in politics” My goodness how right were you Harold; however it does affect the pound in your pocket!

If you can permit me to put aside the current political turmoil’s of sackings, inappropriate behaviour, etc, I will present a down to earth market report.

Global Issues

  • Yesterdays USDA WASDE report highlights
  • Corn yields were increased to 175.4 bushels per acre, which was above trade expectations. This will lead to higher US and world carry out stocks
  • No change in soya bean yields, traders had expected a small decline
  • Wheat yields were in line with trade expectations which included declines in Australian production and increases in the EU
  • Overall a mildly bearish report.
  • Brexit of course cannot be ignored and alongwith all of the political issues we are currently experiencing it can only result in £ weakness but “apathy rules...so what?” we couldn’t export wheat when £/€ was below 1.10 so we have no chance at £/€1.13+. Some suggest that the € is undervalued but should strength in € occur it would weaken MATIF which could undermine levels in both UK wheat and rapeseed.

At home

Wheat

We have seen a fall in London futures prices but now appear to be firmly range bound. Farm feed wheat prices however have remained firm in comparison. The strong demand continues to come from the North and has kept prices firm for anything that is suitably located for a trip up North.

In comparison we have seen a significant decline in milling premiums as trader’s rifle through their samples and discover that there is more marketable milling wheat than they originally believed. Millers in the meantime have taken on good cover through to March 18 and are approaching new purchases with a relaxed attitude.

Barley

Fundamentally supply is available as quantities of malting barley are downgraded. However the lack of ocean freight currently keeps the market stagnant. Malting barley prices have dropped recently but we would expect a recovery at some point.

DJE 10.11.17



David, Rob and Jonni

David, Rob and Jonni

MARKET REPORTS

David, Rob and Jonni

David, Rob and Jonni

Sitemap

Disclaimer

The information contained on this website is given in good faith and without prejudice and is compiled for the convenience of members and other site visitors. The content therein is provided "as is" for general information purposes only and does not constitute any investment advice.

The information and data contained herein are obtained from sources believed to be reliable. Fengrain Services and Fengrain Ltd it's directors, servants and agents ("The Group") furnish this information without responsibility for accuracy or completeness, and it is accepted by the site visitor on the condition that errors in transmission or omissions shall not be made the basis for any claim, demand or cause for action.

Due to various factors — including the inherent possibility of human and mechanical error — the accuracy, completeness, timeliness, results obtained from use, and correct sequencing of information available through this website is not and cannot be guaranteed by the The Group. The Group expressly disclaims all liability whatsoever (including liability for consequential loss or loss of profit), howsoever arising, from the use of information or any recommendation contained within this website which is acted upon by the reader.