Monday Market Briefing – 4th May 2020

Shipping Activity:

MV MIRJAM loading 2,200 MT Soft Milling Wheat – Shoreham – May 4th.

MV BEAUMONDE loading 3,200 MT Propino Malting Barley – May 6th-7th

We have a shortened week with a rare Friday Bank Holiday in the UK to mark the 75th Anniversary of VE Day. It’s a reminder of another generation that faced challenges in their time and there are comparisons now being made in terms of the economic impact of WW2 and the coronavirus pandemic. The market drifted to the low end of its recent range last week partly due to rain in some key areas, but also as buyers are noticeably reluctant to engage for new crop positions. We expect LIFFE and Matif to find support this week particularly as crop ratings in many areas continue to deteriorate.

BAF’s early work on the 2020/21 UK wheat supply and demand is producing some interesting pointers - have a look at the figures on the Grain Markets icon of our website. Unsurprisingly, with a wheat crop just under 11 mln MT, we will be a nett importer again next season after a one-year return to nett exporter status. However, with increased carry-in stocks and imports, modified usage and less ethanol demand, the figures readily balance and we expect the UK to ship as much as half a million tonnes of quality wheats during the campaign. Click HERE for the full UK S&D Balance sheet.

We’ve talked many times about the reputation the South of England now enjoys as a key producer of very high quality milling wheats and malting barleys. Gossip from elsewhere casts doubt on many other regions of UK and Europe and our best crops could well be highly prized this coming winter.

Have a good week and stay safe.

Bartholomews Grain Marketing Team