Monday Market Briefing - 25th October 2021

Markets continue to make gains. Since the post-harvest price dip ended on 13th September, we have now had six positive weeks in a row. November LIFFE is approaching expiry and May22 will become the new focal point now. Prices are testing the upper limits of what we all think is plausible before demand destruction takes over, but for now the outlook stays positive. Nov22 currently trades at a £26 discount to the old crop and presents quite a dilemma for forward looking sellers, which we will no doubt return to in upcoming reports.

Logistical challenges continue to haunt everyone’s daily activity. We have two vessels in this week with the autumn programme very much underway, but everything is at full stretch just to complete existing commitments, so expect fresh pre-Christmas action to be limited from now on. The good news is that demand is certain to persist into the New Year – markets are coming to terms with the quality available from the UK. As Oct-Dec contracts move there will be good opportunities to make follow-on sales into all these markets, and it will be worth looking at the bids if you want to secure a good Jan-March slot.

Have a good week.