Monday Market Briefing - 15th March 2021

We find ourselves well and truly stuck in the no-mans-land between crop years, old crop news has less punch now the pathway to harvest is more clear. Eventually that market has to merge with new crop but it doesn’t want to come down at the moment, and buyers have more to do. We know new crop looks tight, but it’s still some way off and buyers won’t rush to engage at these high prices unless they have orders to cover. UK wheat is currently valued very close to French which also limits any upside for the time being.

Sterling has continued its creep higher against the Euro, latest data shows an alarming up-tick in new virus cases in several EU states in marked contrast to the UK. Obviously we wish our neighbours well in nipping this in the bud, but if the divergence continues it could drive our currency higher and that is a threat to grain prices.

The South of England is very well on with the spring barley drilling programme, with the weather looking favourable for this to be completed and the crop to get away to a good start. Crop emergence is an excellent time to look at fresh sales for the crop, especially when prices are so buoyant.

Early Monday trades were lower which probably sets the tone for a moderately negative week ahead.

Have a good week and stay safe.