Monday Market Briefing – 6th July 2020

Ships in Port - MV Katrin loading 3,330mt  milling wheat

Markets wanted to rally last week and certainly found enough encouragement in the latest crop updates to do exactly that. First up was the USDA who unexpectedly clipped US corn acres by 5% from their March estimate. These acres appear to have gone unplanted rather than switching to other grains as is sometimes the case. The crop could still be a big one but this is now dependent on impressive yields if it’s to be achieved. For the EU + UK  new forecasts point to an 11% drop in wheat production vs 2019, a fall of 16 million tonnes. Finally , quality reports from Spain and some Black Sea origins were disappointing and may even bring Spain unexpectedly back to the import market for quality wheat this year.

Enough fuel, you might think, to drive markets on harder than the £4 rally actually seen on the week, but as we’ve said many time’s recently the market is still tightly range bound until the reality of the crop is known.  Buyers will react to the samples when they see them. It’s all going to be more about the quality than the quantity available, and we could be in for a lively August-September as things become clear.

The first combines rolled out in Sussex in midweek to collect winter barley with some being encouraged to go ahead of the heavy winds which arrived over the weekend. More will come forward this week and early reports are encouraging with good bushel weights in samples. Shoreham is open for new crop delivery – speak to your farm trader for the latest prices .

There is still time to grab a slot at our moisture meter clinics this week at Chichester, Fisherton or Golden Cross. Call the grain office on 01243 755650 if you would like to come along and get a certificate for your Assurance records. 

Have a good week and stay safe