Monday Market Briefing - 14th March 2022

Old and New crop markets posted £12 gains last week, not as spectacular as the previous week, but still one way traffic. The situation on the ground in Ukraine continues to worsen, but occasional hints at the possibility of a negotiated settlement showed themselves capable of knocking the market back quickly, and were a reminder that we are trading old crop wheat now about £100/mt above where we would likely have been without the war. Markets will not go up indefinitely and political intervention becomes ever more likely. Temporary relaxations of bi-ethanol mandates, opening up the EU to GM crops and other measures to encourage production are all possible bumps in the road for the market ahead.

UK farmers spent the week mostly pre-occupied with securing their forward requirements for inputs which are also trading at historically high prices. The rest of March promises perfect early spring weather, spring crops are getting away well and those destined for heavier land should also go in on time. Farmers are likely to want to lock into some forward sales at these levels soon if only to secure value against these higher input costs.

This week we are hosting the Shoreham Users Meeting which will cover trading prospects for the season ahead. Non Storage customers are also very welcome to attend - space permitting. The event takes place as usual at the White Swan , Arundel  on Thursday 17th March 11:00 start with a light buffet lunch to follow. Contact your farm trader or the grain desk on 01243 755650 if you would like to come along.

Have a good week.