Monday Market Briefing - 12th July 2021

Markets took a fair clattering again last week, shedding £6 amidst a wider sell off across all sectors and ahead of the latest USDA report due later today. A truly massive global crop is now priced in, beating last year’s all-grains record by perhaps as much as 75 million tonnes ( +3% ) - so much so that 2021 crop is now trading at a discount to the 2022 and 2023 markets. Viewed in that context of course, new crop prices remain very healthy and we keep everything crossed for a fair harvest and a sound crop to work with. With energy and stock markets stabilising we expect our markets to hold around current levels this week as we await harvest start.

Weather prospects for Europe are mixed, The UK looks to be in for a much better settled period after Tuesday which should finally bring forward the start of our harvest.  Normally we would be seeing the first winter barleys this week but they still look some way off and overall, the Southern England grain crop is a solid week late. By way of contrast, the Low Countries are forecast to receive another 100mm of rain this week, delaying their harvest further. There is a very real threat to hagberg in French wheat emerging, around Paris winter barley is about 50% cut ( with moisture levels around 14.5 – 15.0  some 2% wetter than last years harvest ).  So far the crop has yielded well and with good quality, but they may have a challenge segregating this material from the later stuff coming in next week.

Have a good week and stay safe.