Monday Market Briefing - 23rd March

Shipping Activity  -  MV FRI OCEAN - 3,300mt Milling Wheat, Shoreham

What a difference a week makes. UK and EU markets ended last week €8-10/MT higher, regaining all the ground lost the previous week on the Continent and pushing UK prices up into new territory.

French analyst Strategie Grains signed off on Friday with a revised 2020 wheat crop estimate for UK of 9.8 mln tonnes – implying a wheat yield of less than 7.0 MT per hectare which seems premature but will no doubt keep markets positive this week. China has been an active buyer of wheat last week, and over the weekend we learned that Saudi Arabia’s planned barley tender was increased from the expected 0.7 million tonnes to 1.2 million tonnes, all for shipment in May-June. These are big numbers and indicative of how the world is now bracing itself for potentially massive commercial disruption in the months ahead.

Spring plantings in France are still languishing a long way behind normal, whereas the UK now has a fantastic opportunity to get our spring crops established in good order with a glorious weather week in prospect. Maltsters are noticeably absent at the moment, potentially unsure of the impact of the virus on beer consumption, but if the UK crop emerges in good order it might well attract buyers attention at current values.

Everything points to another active trading week with keen market interest to cover new shipping commitments.

Have a safe week.

Bartholomews Grain Marketing Team