Monday Market Briefing - 11th December 2023

Markets were better supported last week, China bought over 1 million tonnes of US soft red winter wheat- a huge cluster of purchases which helped bring a firmer tone. The US grain had become heavily discounted vs other origins throughout November – dragged lower probably by looming hefty US corn surpluses – and China saw an opportunity. The resultant rally in Chicago brought their wheat back in line with Russian/European values but does not so far look inclined to push on into higher territory.  

Friday evenings WASDE report held no surprises to spoil anyone’s weekend. Ukraine’s wheat output this year is pegged at 22.5 million tonnes, about a third down on pre-war levels. Russia is expected to export 50 million tonnes of wheat for the first time this season, an increase which more than offsets anything lost from their friends and neighbours.  

All ports in UK await the arrival of weather delayed vessels to clear their programmes. As buyers all drag their feet to take delivery of commitments at the last possible moment, the December congestion is becoming a bit ridiculous. We have a lot of grain to move in the next few weeks so keep in touch and we will do our best to keep you up to date with latest prospects which change literally by the hour.  

Have a good week.