Monday Market Briefing - 8th March 2021

Markets pottered around unchanged last week with very little in the way of fresh news. Persistent weather concerns for the South American corn and soybean crops resurfaced towards the end of the week. The USDA monthly update is out this Tuesday but shouldn’t bring shocks at this late stage – the key US planting intentions report is at the end of the month and this will increasingly draw the markets focus as we get nearer to it.

The prospects for many major economies to emerge from lockdown are improving rapidly. This will bring an immediate upswing in economic activity which consumers may find themselves exposed to against dwindling old crop stocks. There are more noticeable signs of activity on that side now, and we expect markets to remain supported and have a positive week.

Farmers at home are preoccupied with spring drilling, and the crucial spring barley crop is going in on time and in good conditions. France is mostly finished and after a good weekend the south of England will be 15-25% done; rain will interrupt things on Wednesday but the March forecast looks promising for the crop to get away well. The UK should have a healthy export surplus of malting barley and forward premiums look attractive for anyone thinking of making a first small sale into the marketplace.

 Have a good week and stay safe.