Monday Market Briefing - 28th March 2022

Markets continue to bump along at or near the highs, but can no longer be said to have real upside momentum. For the time being, we are high enough. This week sees a USDA stock report which will give an update on Americas ability to meet extra demand diverting away from the warzone. In Ukraine there is a sense of approaching stalemate which might mean the war drags on for considerably longer than we had hoped. Expect the market to continue supported this week.

Most buyers have now adopted a completely risk-off strategy whereby bids are only made to cover their existing orders as and when they come along. The appetite of consumers for anticipating future requirements and bidding to cover them has long been on the wane, but in these exceptional times we are seeing an amplified version of this type of market. Hence, the sharpest bids tend to be for short bursts of action which, once filled, either disappear completely or revert to lower, more cautious levels in-between times. It can be a frustratingly difficult situation at the farm-gate where sometimes sellers may not be able to get the bid for their desired grade or movement position on any given day. The good news is grain has never been in more demand - and it’s really just a case of recognising and then taking opportunities when they come along.

Have a good week.