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July 19, 2018

LIFFE wheat reaches new highs

Cereals
  • Nov-18 wheat futures broke out to new highs following a week of gains supported by deteriorating crop conditions.
  • Traders continue to watch for further declines in US crop conditions which will be a key catalyst for EU wheat prices to remain supported.
  • Imports of corn into the UK remain high as UK wheat prices remain expensive relative EU corn.
  • Feedback from Russian spring wheat yields continues to produce a poor outlook.
  • Ukrainian wheat yields show signs of falling for the first time in five years.
  • German barley production expected to be down nearly 20% as EU malting supplies are eroded by poor yields.

Oilseeds

  • OSR prices remain underpinned as poor yields are confirmed in northern Europe.
  • Soybeans conditions are expected to deteriorate in the US this week as the dry weather takes its toll.
  • The chances of a satisfactory resolution to US/ China trade dispute seems a long way of as talks face further hurdles.