Monday Market Briefing – 22nd June 2020

Shipping Activity: MV SEA KESTREL – 2,150 MT Group 1 milling wheat

This weekend saw the official start of summer, with four days of high temperatures in prospect to herald it in. The warmth is coming up from the south and whilst we don’t expect to see the first winter barleys here this week, the French harvest will make significant progress. Harvest updates from the continent are bound to feature in this week’s market. The French are thought to have a large barley programme in place with China this year, so quality will be closely watched. UK Agencies are slow to react on getting us to a position where we can also engage with China – we await news.

Hopefully all our crops have caught some rain in the last ten days and will now benefit from an extended period of fine weather. Elsewhere, crop prospects keep being downgraded. EU wheat forecasts were cut again and hot weather in the US knocked corn ratings back 4% on the previous level – an alarming fall. Any loss of yield will likely be compensated by increased production in Brazil.  The market remains stuck between comfortable global stocks on the one hand, and declining prospects in exporting countries on the other.

At this stage, most UK growers seem inclined to wait and see what the harvest brings. We expect a quiet week in the markets but there is good activity on the various BAF Standard Terms marketing contracts available for the 2021 Crop. Seed sales got off to a keen start as growers look to secure their preferred varieties in a tight seed supply market this year. Don’t forget to look at the marketing options available when you place your orders. 

Have a good week and stay safe.

Bartholomews Grain Marketing Team