Wheat
Markets this week have continued to drift lower following last weeks temporary blip, spooked by concerns over Southern hemisphere quality and quantity. There is ample Black Sea volume which is currently the cheapest source of wheat and helping keep prices lower. The ample maize crop is also helping keep prices supressed.
Physical demand in the UK is slow and reportedly at its lowest since 2015, particularly in the poultry sector. This would support the report from DEFRA this week which put turkey poult placings down at their lowest levels since the mid 90’s.
Soya
Soya prices are finally beginning to come lower but not at any real pace. It is now clear that there is ample supply despite the lower US crop. It is expected that the USDA will reduce figures in their next report, but this does not seem to be concerning the market too much. Brazil have begun their plantings which are reported to be 3% higher than last season and Argentina are reporting similar expectations on plantings. The next USDA report on 12th Oct could be critical for both soya and grain movements.
Organic
Organic prices are remaining very much flat at the moment. We are starting to see new crop filter in but demand is still slow which is making establishing a market value difficult at times.
There are currently no real supply issues with any product and even India and China are now starting to compete against each other on proteins again now the Indian certification issues have been resolved.
Regards,
Kay Johnson & Martin Humphrey
