Wheat
Market have had a mixed week, bouncing off near contract lows with harvest now all but done for the Northern Hemisphere and data starting to feedback through. US yields are not as high as expected and quality across Europe, including the UK is varied, all of which is just starting to turn prices higher.
On a positive note, the grain corridor is being discussed again this week in Sochi between Russia and Turkey which could be bearish for prices if it comes off, but at the moment this feels like a big if and perhaps not likely to happen until the second half of the season post Christmas.
Soya
Soya prices have also creeped higher this week with continued dryness now stressing crops as harvest starts across the US. Good volumes of purchases from China for US material after a portion of their own soybean crop was affected by dry weather conditions is also just helping keep prices up longer term. Veg oil prices are all moving higher with shortages in palm production caused excessive dryness and an upturn in demand for India for their festive season.
Organic
Organic grain has just moved up slightly from the bottom we have been trading at over the past few weeks as expected. There are reservations about how easy shipping will be in this area now that the safety net of the grain corridor has been removed.
Some Indian sources of soya are beginning to get their certification through and plan shipments to the UK for the later part of the year, but premiums are still quite high and do not quite tip the favour back to Indian now that most mills have had to make the choice to switch to Chinese.
Regards,
Kay Johnson & Martin Humphrey
