Monday Market Briefing - 23rd November 2020

Ongoing global demand is keeping grain markets supported, and last week we saw LIFFE extend its gains through the previous record high of £191.50 on Nov20 LIFFE.  Futures have opened up again this morning at £193.50; up £3/MT from this time last week.  Both Chicago and French futures markets are well supported on wheat, with strong fundamentals pushing corn and soybeans higher also.

Despite being a net importer of wheat this season, the UK has attracted a surprising amount of export demand for specific grades – namely soft biscuit wheat.  Group 3 varieties such as Firefly and Elicit have all the characteristics of the earlier Group 3 varieties grown 15-20 years ago that were in such great demand by European millers.  Their improved yield and agronomic characters make growing Group 3’s even more appealing on-farm, and by attracting premiums up to £15/MT, Bartholomews continue to see them as an important market for UK wheat exports going forward. 

We remain very busy executing feed and malting barley cargoes at Shoreham Silos prior to the Brexit date on Dec 31st.  With both Boris and Barnier self-isolating due to Covid-19 exposure, this is only going to draw-out the negotiations to an 11th-hour decision at some point next month.