Wheat markets have steadied following the USDA’s recent ‘neutral to bearish’ report, November 26 UK feed wheat futures rising to £179.75/t.
Wheat inventories, favourable crop progress reports and the expectation of a large South American maize crop, helped push markets lower. A further update from the USDA last week reported that 68% of the US maize crop was in good or excellent condition, up 1 percentage point on the week.
According to FranceAgriMer, 4% of the French winter barley is already in, ahead of the five-year average. The prospect of an agreement between the US and Iran also pressured markets, Brent Crude falling further.
However, the outlook is far from certain. The heat dome will bring exceptionally hot conditions to much of southern and central Europe, and spring crops could be impacted. Despite reports of US – Iran peace talks as “encouraging”, a war of words has followed, with Iran issuing a stiff reminder that the Straits of Hormuz is Iranian sovereign water.
Oilseeds outlook
Lower crude prices have kept the pressure on the oilseeds complex, November Paris oilseed futures are still below €520.00t, although prices have edged higher since last week’s close.
But again, traders’ eyes will be on the weather with the prospect of a super El Niño. The AHDB is also advising growers to keep an eye on domestic political stability and currency movement, given Keir Starmer’s resignation as Prime Minister.
