Monday Market Briefing - 1st June 2020

The UK market took matters into its own hands last week, gaining £4.65/MT on LIFFE against a quieter back-drop elsewhere. Dry weather has led some to talk of a sub 10 million tonne wheat crop for the UK, which would be the smallest since the pre-intervention 1970’s if it were true. We are now positioned at a premium to the MATIF contract in Paris meaning the UK is to be expected to be a nett importer this year. We should note, the biggest factor in this crop forecasting is lack of plantings in East Anglia; in many areas of the South winter wheats still look in very good condition.  Continental markets were calmer – overall crop condition ratings remain poor but with rain in their forecasts, prices were held back. We also have a change coming which may bring showers from Wednesday onwards. It’s all suggesting that markets have travelled high enough for the time being.

Spring barleys are a bit more variable, but most crops are still at a stage where they can benefit from rain when it arrives. We continue to prepare for a busy export campaign for this crop as interest for new crop malting barley has increased steadily in recent days.

Demand for old crop milling wheat keeps appearing and there are fantastic opportunities now to place remaining parcels at seasons highs and avoid the stress of carrying over to the new season.

Have a good week and stay safe.

Bartholomews Grain Marketing Team