The USDA report out this week could have caused some market excitement but was little changed from the previous report.
The usual squaring of positions around its release pushed prices up a little, but the market soon settled. The biggest excitement caused by the USDA website being down when the report was released.
The UK crop is still behind on planting as the wet weather is giving little chance to catch up. UK markets are unsettled from the election and all that may (or may not) follow, and as a consequence Sterling has been volatile, so the price of UK wheat has remained firm even when global markets have eased back after the initial USDA reactions.
The UK wheat price closed at £143/T for the November 19 contract and £152/T for the May 20 contract, and £153.35 for the November 20 contract – a significant premium over the November 2019 contract, reflecting the poor planting progress, and the probably impact on yields. There is a definite change in sentiment from the UK grain trade from needing to sell as much old crop for export to we might need it next year.
UK wheat is currently at a small premium to EU markets with no incentive to be bought by international traders, despite it having been at a £12-14 discount just a few weeks ago. Barley is looking plentiful with some surplus this year, and there is potentially a big crop next year. Will spring wheat seem a good choice for some?
In the USDA report, US stocks were reduced to 1.014billion bushels, but overall the world wheat end stocks was slightly increased to 288.3 Mln T from 287.8 Mln T in Octobers report. Drops in the Australian wheat crop (down 0.8 Mln T), and Argentina (down 0.5 Mln T) were made up in full by an increase in the Russian crop from 72.5 Mln T to 74 Mln T. The estimate of 269 Mln T for the world end stock, under the average trade estimate of 300.3 Mln T was only enough for a mild ripple in trading.
The USDA report was slightly more negative for Soya bean markets. US Yield figures were relatively unchanged, along with the acreage figure. In line with the lower meal exports US crush was reduced by 0.4 Mln T and carry out increased. The main players, US, Argentina and Brazil, unchanged there was still a reduction of 2.5 Mln T in the overall world production figures. But as the world crush is down by 1.5 Mln T and stocks slightly up, the overall world stock figures saw a modest rise of 0.2 Mln T to 95.4 Mln T. Unfortunately for the UK the unknowns of our politics/currency and Brexit are currently enough to mean we are not seeing much benefit from this.
A hen for £1!
Seemed like a good deal to a man in New Zealand who wanted to help a bird in need. After seeing the “urgent sale” on the Trade me site Steve Morrow, who manages a B&B, thought a few egg giving hens would look great, and he would be able to help a few feathered ladies at the same time.
A quick bid was all it took, and he waited to see if he won. It was only when the online auction was over and he was contacted by the seller that he found out he had bid on (and won) 1000 hens for $1.50!
The confusion happened as the seller, a free-range egg farm in Auckland needed to be empty by Monday. The ad listed “one 1000” birds. The buyer thought the winner could take as many birds as they wanted from 1000 and the price was per bird. After realising that 1000 hens might be a few too many an animal sanctuary was contacted, and a social media post created to get these girls homes. A man with a farm has volunteered to keep the birds safe while they were vet checked as safe to rehome and interviews of potential homes were carried out. The response was huge, and it is thought all the hens will be rehomed in as little as two weeks!
700 have already found homes and Mr Morrow is keeping 20 birds himself. A clucking bargain or Flock horror - either way its good news for these hens.
Brought to you by Melanie Blake and Martin Humphrey
