Tuesday Market briefing - 14th September

Last Friday’s USDA report did little to inject any enthusiasm into the grains markets, and expectations over yields, stocks and harvested area were largely met. Parts of the report regarding acreage were accidentally released earlier in the week which caused a steady sell-off in grain markets ahead of the official release. The average US corn yield increased slightly by 1.7 bu/acre, mainly due to better production in the main Midwestern states. Elsewhere across the globe, corn and soy production remained unchanged.

Back in the UK, we are still sorting through the melee of the closing stages of harvest. Due to the cool weather and lack of sunlight earlier in the year, quality has been extremely variable with a lack of grain fill in both barley and wheat. Harvest rains hampered the combining process and some hagbergs have been affected, but generally Hagberg falling numbers are robust. For malting barley the smaller grain size is affecting the retention – usually min 90%.  However with strong brewing demand in Europe supporting barley values, the UK’s export barley crop is highly blendable and we anticipate a continuation of historically high values throughout the season.

Demand for spot material remains good, but with the limitations in road haulage capacity across the country, please allow enough notice for us to get the logistics in place ahead of time.

Have a good week.