As the Northern Hemisphere harvest continues. the bearish sentiment remains over grain markets.
Historical data reveals that August is typically a flat month, but the price of UK feed wheat futures for November is currently the lowest it has been at this point in the harvest cycle in four years. The latest AHDB Grain Marketing Report shows UK feed wheat futures (Nov-25) stand at £172.45/t, the May-26 contract also fell from July’s close to £184.40/t.
With a strong supply situation coupled with questions over demand, plus currency fluctuations, political tensions and speculative trading, AHDB analysts expect little improvement in the immediate future. Adding to the pressure are reports that grain from central Russia is now reaching ports, adding to available supplies and weighing on prices (LSEG).
Oil complex weak
Rapeseed is also under a little pressure, with general weakness across the vegetable oil complex. Nov-25 Paris rapeseed futures slipped to €469.75/t. The May-26 contract also lost ground from July, standing at €476.75/t.
Rapeseed prices are closer to the seasonal norm and AHDB analysts note that rapeseed futures may stabilise in September if prices follow seasonal trends.
Trader attention will turn to US soya bean forecasts with the crop at the critical flowering stage.
