Tuesday Market Briefing - 1st June 2021

Markets stabilised towards the end of last week , ending close to unchanged going into the half term holiday. Improving crop prospects across the northern hemisphere brought us back from the highs almost as quickly as we were carried up there. Supply fears tend to hit markets like lightning bolts whereas demand led rallies are by their nature more slow-burning affairs. £165-170 ex-farm for Oct-Dec wheat looks like a key support level for the time being, markets being reluctant to push below, and arguably now we have a market where high crop yields are being priced in. With many on holiday, we expect a quieter weeks trading this week but with the tone remaining  supportive.

At home, old crop wheat lacks demand and direction, barley is sought after and in very tight supply. Best group 1 samples might well pay for carrying into new crop where space allows, there should be enough feed wheat demand to mop up the rest especially if the new-crop arrives ten days late as is still predicted. Of course, a late/big crop will create its own logistical challenges and non-storage open market sellers should be thinking soon about placing harvest sales to ensure movement. Recent harvests have been fairly relaxed affairs relatively speaking – this one could be anything but!

Have a good week and stay safe.