Monday Market Briefing - 6th November 2023

A weak Dollar supported US grain prices last week and helped our own May LIFFE contract close above £200 again on Friday. Thankfully, there appears to be little appetite from Hezbollah in Lebanon for a serious engagement with Israel for the time being, oil prices were trimmed late in the week as this became apparent. Unlike Ukraine, where intense fighting continues, the middle-east region is not quite so pivotal in grain terms, with the main danger being its potential to trigger another escalation in global energy prices if the conflict were to spread.  For now, global wheat supply is ample and its price will be merely a follower of corn until something changes.

 

At home we have to contemplate the prospect of significantly reduced autumn plantings this year, after an incredibly wet spell of weather affected pretty much the whole Country. Fortunately, market interest for UK spring grown crops of malting barley and oats has never been stronger. There are some enticing bids around on new crop if you are feeling brave, but perhaps more importantly for now – spring seed availability will get very tight very quickly this year. Trials data keeps on showing that early drilling is critical to the success of these crops with mid-February regarded as the point after which yield and quality potential drops sharply. Get your preferred varieties in the barn asap ready for the dry spells when they come?

 

Have a good week.  

Bartholomews