Currency has remained remarkedly stable since the Brexit deadline was postponed again; The price of UK wheat remained firm this week; New crop planting is still only 50% complete; French wheat plantings have made little further progress, mirroring the UK; The Russian Agriculture ministry downgraded the 2019 crop to 75 Mln T; The US announced that it would remove harsh import tariffs against many Chinese imports.
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Brexit is driving GBP currency; November wheat futures traded sideways; Barley crop biggest in 30 years; US and European wheat markets remained strong; US has positive feedback on trade negotiations with China; France announced a reduction in its maize forecast; Yield reductions caused a large proportion of the downgradein soya bean production; The Chinese economy is growing more slowly than in recent years; Survival of the fittest or the friendliest? What do you believe? This story is interesting for feeding for health and disease prevention in the future.
The UK market seems to be stronger as rumours and currency pushed London wheat to three-month highs. Drought seems to be affecting many areas of the world. The remains of England’s most notorious and richest pirate Captain Black Sam Bellamy may have been discovered on the wreck of his ship the Whydah Gally.
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?!
UK wheat prices showed a small bounce earlier in the week but have returned to the gentle downward trend, with the May wheat hitting contract lows of £137.50 and finished the week just above that level. Can a swarm of locusts cause huge embarrassment to Russian officials if as feared, the locusts sit down to enjoy some of the football pitches set aside for the World Cup in June this year.
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).