Wheat
The week has ended largely back where we started although we did see a temporary blip where prices rose by £10 in 24 hours, before coming back to previous levels in almost the same time frame.
There are quality concerns over this year’s wheat crop and the market is now starting to focus on losses likely to come from Australia due to the severe heat. However, the reason why the market cannot quite sustain a rally is because there is still a huge abundance of cheap Black Sea grain and this week the first vessel through the new temporary humanitarian corridor left Ukraine bound for Egypt.
Maize prices have been slowly coming lower as the US harvest gains more momentum.
Soya
Soya prices are finally beginning to come lower but not at any real pace. It is now clear that there is ample supply despite the lower US crop. It is expected that the USDA will reduce figures in their next report, but this does not seem to be concerning the market too much. Brazil have begun their plantings which are reported to be 3% higher than last season and Argentina are reporting similar expectations on plantings.
Organic
Organic prices are remaining very much flat at the moment. We are starting to see new crop filter in, but demand is still slow which is making establishing a market value difficult at times.
There are currently no real supply issues with any product and even India and China are now starting to compete against each other on proteins again now the Indian certification issues have been resolved.
Regards,
Kay Johnson & Martin Humphrey
