Following the release of the latest USDA World Agricultural Supply and Demand Estimates (WASDE), it has kept the pressure on wheat markets
The USDA has estimated 2025/26 global wheat production at a record high of 837.8 Mt. Consumption is also expected to increase this season, although that rise does not outweigh the increase in supply.
As a result, the latest AHDB Grain Market Report shows UK feed wheat futures (May-26) at a new contract low of £170.10/t.
Currency movements also added pressure to domestic grain markets. In line with expectations, the US Federal Reserve cut interest rates by 0.25 percentage points to a range of 3.5% to 3.75%. This caused sterling to rise against the dollar to the highest level since October, £1 = $1.3382 (LSEG).
Oilseeds supported by biofuel announcements
After falling earlier in the week, Paris rapeseed futures (May-26) recovered and stand at €469.75/t.
Support followed the German government’s approval of the transposition of the third European directive on renewable energies, known as RED III. RED III is the EU’s 2023 directive requiring at least 42.5% green energy use by 2030, boosting prospects for biodiesel.
The wider global oilseed complex also found some momentum from the US market after it was announced 467 Kt of new soya bean sales, with 136 Kt of this set for China.
