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21st July 2017


£ / €

£ / $

$ / €

1.1167

1.2995

1.1636

Date

Price

Weekly Change

London Wheat

Nov 17

£ 148.50

£ -0.5

Date

Price

Weekly Change

MATIF Wheat

Dec 17

€ 177

€ -3.75

Date

Price

Weekly Change

MATIF OSR

Nov 17

€ 369.75

€ -3.75

*This data was correct at time of publish.


A few days of rain and perhaps more ahead of us and with wheat hard and sharp ready in some places raises the question of quality issues.

American markets nudged up recently on the back of drought conditions worsening and expanding in parts of the U.S.

The contrast is occurring in parts of Europe as rainfall has disrupted the German harvest progress as quality concerns continue to persist. 

Early cut Barley, OSR and Wheat have shown very encouraging yields and quality. Good kilo weights on the Wheat and Barley and some exceptional OSR yields.

Post thunderstorm crops showed little damage around here but the question is what will happen this weekend? The forecast for rain appears to be only a fraction of previous expectations and I suspect that growers will take every window of opportunity to get going even with higher moisture.

As harvest starts in earnest yields are better than expected with the possibility of a 2M crop on a reduced planted area. Prices have steadied at £300+, with currency helping significantly. Elsewhere dryness in Australia & Canada are causes for concern as is in the USA as Soyabean's move towards 'pod fill' in August. This could all help maintain ex farm values as we move into the Autumn period and will possibly encourage more OSR to be planted for next season.

Germany is suffering some significant wet weather currently but they are more concerned about quality (Protein) rather than yield.

The French who were deeply pessimistic 2 Weeks ago have been increasing their crop production ever since, but again a question mark over quality.

Back home even if we do have decent yields it’s highly unlikely that we can produce more than 15Mt of wheat. If the ethanol plants are running (currently yes) the UK S&D is tight and potentially only sufficient to serve our domestic markets. This is fortunate because we are very uncompetitive on the wheat and barley export market as I write

In a nutshell! If we have poor quality the feed wheat price will go down but premiums will go up.

David, Rob and Jonni

David, Rob and Jonni

MARKET REPORTS

David, Rob and Jonni

David, Rob and Jonni

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