Tuesday Market Briefing - 6th April 2021

The USDA surprised the market with lower than expected planting estimates for corn and soybeans, as markets jumped higher before calming down as the week ended. Every bit of next year’s production is going to be needed to satisfy demand – big yields could make the maths easier, but the market will now be particularly sensitive to weather concerns this summer. With many traders on holiday we expect a relatively quiet sideways show again this week.

All markets need buyers to make them go higher, and for the time being consumers remain largely inactive, buying to cover confirmed orders, but otherwise waiting on the side lines. This is a bit of a headache now for UK old crop wheat as we go into the last quarter of the season. Feed wheat is still trading, but flour-millers remain long-term absentees despite repeated assurances they have more to do. Even with markets off the January peak, current feed bids are hardly a disaster, and lower grade milling samples are flowing that way now. There is no incentive to carry wheat over so this trend will continue and possibly accelerate.

The UK is of course, still on track for a post-lockdown economic turn round, maybe the associated late rush of orders will revitalise this market but timing is getting tight and we wait impatiently to see what they come up with – and how much supply is still available when it happens. Have a tot-up now and let us know what you have left to sell so we can make sure you get the call if and when things kick off. We also have some interest for planet malting barley if you have any left in a corner.  

Have a good week and stay safe.