World wheat markets have come under further selling pressure this week, with little to no fresh bullish features to be seen.
Whilst demand slows, an improvement in the weather and crop ratings has encouraged speculative funds to build on their short positions in agricultural markets.
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.
Last week's price spike because of Black Sea supply concerns and confusion over a cap on Russian grain exports seems a distant memory.
The plentiful nearby physical wheat supply is again weighing on markets and whilst Russian exports continue to power ahead, the EU and US are left trailing in its wake. Russia is expected to have its poorest performing month in November since the start of the season, but despite that the country is likely to ship about four million tonnes of wheat as it continues to dominate world trade.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Luncinda Redgate.
This week has brought more volatility across the US and European wheat markets.
On 3rd November, London International LIFFE (Financial Futures and Options Exchange) closed at £200.50/t. Since then, London futures traded in a £7.05/t range between £205.00/t and £197.95/t before closing last night at £201.05/t.
MATIF (Marché à Terme International de France) followed a similar pattern, closing at €240.00/t on 3rd November. Futures traded in a €8.25/t range between €245.00/t and €236.75/t before closing at €239.75/t last night.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by marketing assistant, Becca Russell.
It has been a relatively quiet trade week, with a lot of Europe out of the market for All Saints Day on Wednesday. The Marché à Terme International de France (MATIF) remained open, but it was very quiet.
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 markets came under pressure again this week, extending recent losses under the weight of fresh export sales from 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.
Late last Friday the United States Department of Agriculture (USDA) updated the markets with its latest US wheat production estimates. The data showed a marked increase over its previous figures, ahead of the most upbeat pre-report trader estimates, which resulted in a sharp fall in wheat futures.
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 appetite for world wheat export market share continues to be the primary bearish market driver. The latest estimates see Russia shipping 5.1 million tonnes of wheat in September and although this is 200,000 tonnes below last month, the first quarter of the season will now see a staggering 14.8 million tonnes shipped. On average, this figure is more than one million tonnes each week. There's also a quest for future sales, made evident by the news of intergovernmental discussions with Egypt for the supply of another one million tonnes of wheat.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by marketing assistant, Becca Russell.
Despite UK wheat futures prices falling back from their recent highs earlier this week, weaker sterling is now edging them upwards although current values are only £10/t over the futures contract lows.
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.
Last week's trade ended quietly with all markets posting small losses at the close. The London International Financial Futures and Options Exchange (LIFFE) was down £0.85/t, Marché à Terme International de France (MATIF) lost €1.50/t and the Chicago Board of Trade (CBOT) fell by $0.05/t.
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 continues to dominate world wheat export trade whilst the US and EU fall further behind, leaving falling prices. Leading analysts revised estimates and put the Russian wheat crop between 91 and 92 million tonnes, with exports for the season between 48.5 and 49.5 million tonnes. 20% or more of that export target has already been achieved during the first two months of the season, with 9.7 million tonnes reportedly shipped by the end of August at record pace.
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.
Many UK farmers crossed the finish line this week, bringing a welcome end to one of the most challenging harvests for over a decade. Continued periods of rain delayed combining – a complete contrast to last year's harvest where prolonged dryness allowed for the earliest and quickest harvest since 1976.
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.
Late last Friday the United States Department of Agriculture (USDA) published its August World Agricultural Supply and Demand Estimates (WASDE), but despite a reduction in year-end stocks for both world wheat and corn, the absence of any surprising bullish data left futures reacting negatively. World wheat production is now seen at three million tonnes lower than it was in the previous month at 793.37 million tonnes.
Unfortunately there is no Frontrunner podcast this week but it will return as normal from next Friday.
The week started with a sharp rally for wheat futures prices following a weekend of military action between Russia and Ukraine. Ukraine seaborne drone attacks on Russian commercial shipping, including a tanker near the Crimean, caused renewed wheat supply fears. Russia is currently shipping between 3.5 to 4.5 million tonnes of wheat each month, with approximately 70% of this total coming from its Black Sea ports. Any tangible disruption to sea freight will have a positive impact on prices, especially if importers are forced to seek supplies from alternative sources such as the EU or the US.
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, US wheat futures markets rallied to briefly touch their highest level since late February this year in what has been a notably volatile period of trade. On Monday, aggressive fund short covering took prices to their daily trading limit of 60 cents up - the equivalent of a 9% price gain. The primary trigger for the gains was the Russian military attacks on Ukrainian grain loading terminals on the River Danube. This river has proven an effective export route for Ukraine wheat and other grains since the Russian invasion in February last year.
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.
Events unfolding because of the Russia/Ukraine conflict have once again had a major impact on world wheat prices this week. Following months of threats, Russia chose to halt its engagement with the UN-brokered Black Sea wheat export deal on Monday, which previously allowed vessels to safely collect wheat and other grains from selected Ukraine Black Sea ports. Since its inception a year ago, the deal has seen almost 33 million tonnes of grains and oilseeds shipped around the world, helping to supply some of the poorest nations.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by marketing assistant, Becca Russell.
The United States Department of Agriculture (USDA) struck a bearish blow to global grain markets late last Friday, announcing a shock increase in the 2023-24 US corn planted and harvested area. This came following an increasingly optimistic view on yield potential for the crop, with the recent arrival of widespread rain across the US corn belt following a sustained spell of dryness. The USDA now estimates that US farmers have planted 94.1 million acres of corn - up two million tonnes on its previous estimate - and that they will be able to harvest 86.3 million acres, which is up 9% on last year. This, combined with its estimated yield, would see the US corn crop at 10 million tonnes higher than the estimate made in the World Agricultural Supply and Demand Estimates report published in June, which was set at 387.75 million tonnes.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by marketing executive, Faye Lee.
The United States Department of Agriculture (USDA) published revisions to its World Agricultural Supply and Demand Estimates (WASDE) report late last Friday afternoon. There was a notable jump in its world wheat production estimate, which it now sees rising to over 800 million tonnes. This is 10.4 million tonnes up on last month and 12 million tonnes up on last year. It came as a surprise to many that the USDA did not cut production estimates for areas where adverse weather may reduce output potential. For example, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) recently cut its country's production potential by a third on last year's figure to 26.2 million tonnes due to the expected negative impact on yields from the El Nino weather.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by marketing assistant, Becca Russell.
World wheat markets continued to fall this week, following Russia's agreement to extend the Black Sea export corridor deal until the 17th July. Prospects of a continued flow of Ukrainian wheat have kept speculative sellers active. Encouraging data for improved crop potential in both the US and EU added to the market negativity. US winter wheat condition gained two points to 31% now rated 'good/excellent' and US corn planting reached 81% completion - up 16 points on the week, which is six points ahead of the five-year average.
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.
Late last Friday, the United States Department of Agriculture (USDA) published its first look at the world's 2023-24 grain balance sheets, with a contrasting outlook for wheat and corn. World wheat production is seen rising by 1.5 million tonnes up to 789.76 million tonnes, but year-end stocks will fall by two million tonnes down to 264.34 million tonnes – this will be the lowest for seven years.
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.
World wheat futures dropped again this week, extending their 2023 losing streak. US Chicago Board of Trade (CBOT) figures dropped to their lowest since December 2020 and London old crop futures struck a new contract low which was almost half the peak price it achieved during May last year.
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.
