There were few developments in the wheat market this week, with attention remaining focused on the Russia-Ukraine conflict. Next week will mark one year since the conflict began and this has seen London wheat futures reach their highest level since the 24th March.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Whiteman.
This week world wheat markets continued their February recovery, shaking off the January blues. London wheat futures reached their highest level since 6th January, following European markets higher. The euro has been weak compared to the US dollar, with a 2% drop in value from last week's ten-month high. This allows EU wheat to become more competitive and a key factor in trying to secure export sales to Algeria in its latest tender. Official EU wheat exports are now seen at 19 million tonnes, although private analysts estimate shipments at least one million tonnes ahead of that figure from an overall surplus of 30 million tonnes.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Ollie Wilson.
US wheat production prospects for the 2023 harvest remain in question following a period of challenging weather conditions, also taking into account an increase in the planted area. In January, the United States Department of Agriculture (USDA) estimated US farmers had planted 36.95 million acres - an 11% increase on the year. Although others estimate less, if this growth is accurate there is a question around how much of that area will provide a crop.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Whiteman.
Wheat futures saw further aggressive selling on Monday which extended the negative price run that began in early 2023. Chicago Board of Trade (CBOT) wheat futures dropped to their lowest level since October 2021 with sellers encouraged by weekend rains and snow that fell across much of the US winter wheat producing states.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Lucinda Redgate.
Russia's military activity in Ukraine have had a significant influence on wheat prices over the past 11 months. Last May, wheat futures soared to record high levels as the Russian invasion of Ukraine halted Black Sea exports from one of the world's primary wheat exporters. The subsequent arrival of a record Russian wheat crop - now put above 104 million tonnes - has resulted in notable wheat exports, increasing their market share in world markets. This has contributed to wheat futures prices falling back to levels not seen before the conflict.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Whiteman.
Wheat futures rallied over the festive break with many regaining the losses they had posted earlier in December. The primary driver for this was the extreme cold that hit a significant part of the US winter wheat belt with freezing temperatures as far south as Texas raising concerns for winter kill. US winter wheat was already in poor shape with over 70% of the area drilled in drought conditions heading into the winter.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Lucinda Redgate.
Wheat markets enjoyed some festive cheer over the Christmas holiday season. Prices moved higher and regained the losses they had made since the end of November. However, this short-term blip reversed in the new year with sharp declines and futures markets headed back down towards multi-month lows.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is ready by farm trader, Sophie Whiteman.
UK wheat futures have struggled to recover from last week's 9-month lows. UK wheat futures are currently hindered by low world prices and a slow export pace. Official customs data puts UK wheat shipments to the end of October at 313,700 tonnes and it is likely a further 200,000 tonnes will have been shipped by the end of December. With a wheat surplus of more than two million tonnes, the pace of shipments needs to increase significantly in the new year to avoid a considerable build-up of carryover stocks. Domestic demand to the feed sector is in question, with many feed wheat consumers unable to take delivery of existing purchases due to a slowdown in usage.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Ollie Wilson.
European and US wheat futures prices have continued to fall this week. US Chicago Board of Trade (CBOT) wheat futures fell to their lowest since the end of September 2021 and Paris wheat futures to their lowest since March 2022. Futures prices have come under pressure as a result of Russia capturing an increasingly large share of the global export market.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Whiteman.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
US Chicago Board of Trade (CBOT) wheat futures have fallen to three-month lows and are now trading at levels last seen before the start of the Ukraine-Russia conflict. Traders are focused on the situation in China, where strict Covid-19 lockdowns are expected to result in reduced demand and lower-than-expected import requirements.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by marketing assistant, Faye Lee.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
Wheat market volatility continued again this week, with London wheat futures falling £12/t below last week's highs. The extended Ukraine Black Sea export deal with Russia, coupled with the record Russian wheat crop and cheap export values, continues to pressure prices. However, support comes from robust demand for EU wheat.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Whiteman.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
This week, wheat markets continued to fall and have seen further losses in value – over £30/t since the beginning of the month.
The primary bearish price driver has been the hope that Russia would extend the grain export corridor agreement in the Black Sea. On Thursday, the UN Secretary-General confirmed the deal would be extended for 120 days.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Lucinda Redgate.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
European prices have steadily declined to levels last seen in mid-September as a push of cheap exports from key producers has occurred. Egypt's General Authority for Supply Commodities (GASC) and Algeria have tendered for Dec/Jan wheat shipments with Russia leading the supply race by pricing significantly below competing origins. Continuation of Russia's wheat export pace (3.5 million tonnes per month) will hinge on the integrity of the grain corridor deal, which is currently the focus of the market.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by marketing assistant, Faye Lee.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
Benchmark global wheat prices lifted 6% on Monday in a knee-jerk reaction to news from the weekend that Putin was withdrawing from the safe Black Sea corridor agreement. Consequently, insurers refused to grant fresh cover for vessels that were returning to Ukraine which caused concern for the 22 boats anchored in Ukrainian ports waiting to be loaded - a further 101 are awaiting inspection. London futures rallied from £12 to a high of £293, which ignited UK farmers to market large volumes at prices not seen for a month.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Powell.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
Markets slipped lower this week but further problems for Southern Hemisphere wheat production helped generate a mild recovery on Thursday. In southeastern Australia, persistent rain and consequential flooding across thousands of acres of arable land is damaging yield and quality. At this stage it is uncertain what impact this will have on total Australian wheat production. Recent estimates are at 34 million tonnes which would be the country's second ever highest crop after last year's record of 36.3 million tonnes.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Powell.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
The possibility that the Black Sea export corridor agreement will be renewed has influenced markets this week. However, whether this renewal will be realised remains in question. President Putin has reportedly commented that a recent attack on the Kerch Bridge, which links Russia to Crimea, was a result of weapons that were smuggled via the corridor and therefore he is unsure whether a renewal of the agreement is in the best interests of Russia.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Ollie Wilson.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
Wheat futures prices surged to a three-month high on Monday. Speculators and trade shorts raced for cover due to the Russian missile strikes on civilian targets in many cities across Ukraine, fearful of an escalation of the conflict and an interruption to exports from the Black Sea. However, markets subsequently eased lower as shipments continued. Comments in the media that Russia may cancel an export quota also triggered selling, although with a record 150 million tonne grain crop - 100 million tonnes of which is wheat – this hardly suggests any restriction for exports is necessary.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Powell.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
Late last Friday, the United States Department of Agriculture (USDA) published its final 2022 US wheat production estimate and surprised markets by cutting over 130 million bushels from its September estimate, which was in line with average trade expectations. The USDA sees the crop down to 1,650 million bushels; the equivalent of 44.9 million tonnes. This reduction in the US wheat production estimate coupled with lower-than-expected corn and wheat stocks in the US (as of 1st September) saw futures prices make sharp gains. The rally continued into the beginning of this week.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Lucinda Redgate.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
World wheat markets continued to rise this week, driven higher by heightened tensions between Ukraine and Russia. Threats to the longevity of the safe Black Sea export corridor amidst the increasingly aggressive rhetoric from the Kremlin has encouraged further short covering and speculative buying of wheat futures. Over 210 vessels carrying agricultural produce have now left Ukrainian Black Sea ports since the UN-brokered deal was signed with Russia, but there is increasing doubt the deal will extend beyond the expiry of the initial agreement in November.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Ollie Wilson.
Problems accessing this blog? Click here to go to our main blog feed where you'll be able to see our latest post at the top.
London wheat futures rallied to their highest point since the 11thJuly this week as a result of escalating tensions between Russia and Ukraine. President Putin said he was mobilising 300,000 additional reserves and announced other activity that has concerned markets. The comments from Putin saw Chicago Board of Trade (CBOT) wheat futures rise by over 7% as the shorts covered their positions fearing disruption to essential Ukrainian agricultural produce exports.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Sophie Powell.
