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.