Monday Market Briefing - 13th December 2021

[Bartholomews]

Markets had a fair bit of news to absorb last week. There was a USDA report which improved ending wheat stocks very slightly, updates on the important Australian harvest pointed to heavy rains which will impact quality, but possibly not yield. International buyers, especially China, were very active at the lower prices all week. After all that, we finished the week on LIFFE £5.00 lower and the market does have a slightly different feel to it. Prices are obviously still very high, but at this point on the calendar pretty much all the bad news from world harvests is out there now and it becomes harder for prices to be driven higher, unless the pace of buying temporarily outstrips the willingness of sellers to release supply. Another drifty week is probably on the cards as the market gradually wanders back to the levels of early November.

Europe continues to place considerable tonnage of feed wheat and corn for third Country exports, but at the same time it seems increasingly likely that malting barley will be imported from distant shores to try to improve supply on the Continent. Argentina and Australia would be the likely candidates and these origins could eventually put a cap (albeit an extremely high one) on the seemingly endless rise in malting barley prices.

Have a good week.

If you want any further insights, please call our Grain Marketing team - 01243 784171 or visit our website www.bartholomews.co.uk/crop-marketing