Monday Market Briefing - 14th September 2020

Sustained pressure on the Pound throughout last week drove LIFFE to new highs against a backdrop of quieter markets elsewhere. For the UK farmer at least, Brexit is the gift that keeps on giving. The week was a timely reminder of the volatility we face as year-end approaches. Farmer engagement in all markets has increased significantly as prices have risen, and this should start to shift the balance towards a quieter period as buyers find the supplies they need. The USDA update cut corn production slightly, but as we’ve said before, it’s pretty clear the world has enough grain this year.

For this week, market direction depends largely on currency again, as we start the week at 1.0850 vs the Euro. Unless we move lower again, some easing of prices is likely.

Malting barley activity has accelerated sharply; pre-rain spring barleys in the south are particularly sought after at a range of quality specs. Anyone who published articles before the crop was planted dismissing the prospects for barley markets this year will have learned a harsh lesson. There is good demand for export and domestic trade, and with feed values improving as well, it’s going to be a busy sector for the next few weeks.

There are also good bids around for early movement of oats, winter and spring, so speak to your farm trader if you have 50kg samples that might suit.

Have a good week and stay safe.