Wheat and Barley
Early DEFRA reports suggest a wheat crop of around 10.1 million tonnes, however the trade feel this could be more like 9.2 million tonnes. Last year we produced 16.2 million tonnes.
Nearby futures prices have eased slightly with better Russian weather forecasts. Global wheat supplies still remain plentiful.
The USDA report last week reduced US ending stocks. This has rallied the market once again and supplies nearby remain tight as we head into a spot premium. Funds hold long positions as they invest in soft commodities as a safe haven.
South America, in particular Brazil, are predicted to produced records crops for next spring. Plant progress is slightly behind.
Prices could come under pressure next spring when crops are established.
Rape meal supplies remain very tight, with a shortage of vessels and with no production from ADM Erith. All being well Erith should be up and running in the next few weeks and we should see some South Coast vessels arriving towards the end of next week.
With Palm Oil increasing we have seen an uplift in both C16 and Calcium Soap prices.
The pound remains quite stagnant hovering around the $1.30 to the dollar and 1.10 against the Euro.
For any quotes, please do not hesitate to contact the office.