Volatility at its best: crude oil ▲25%, new crop UK wheat scores a fresh contract high

[CRM AgriCommodities]

Volatility at its best! Volatility was the name of the game once again today with new crop Nov-20 LIFFE feed wheat scoring a fresh contract high, Matif wheat touching a near 1-month high and CBOT wheat jumping as much as 6.3%. The weak Sterling continues to underpin domestic values as it was down for a staggering 8th consecutive session against the US dollar and fell to its lowest level since 1985. As such, the old crop May-20 LIFFE feed wheat jumped at the open to its highest level since early June 2019 before settling more than £3/T off today's high below the key £160/T mark. New crop Nov-20 LIFFE feed wheat broke through the psychological £170/T level to score a fresh contract high leading farmers to sell although volume was limited due to the poor 2020 UK harvest outlook. In an effort to support the British economy and stabilise equity markets, the Bank of England cut its interest rates to 0.1% and announced £200B of asset purchases. In the wake of short term demand, a tumbling euro and a 5% rally in CBOT wheat prices, Euronext closed above its 30-day moving average for the first time in nearly a month. The May-20 Euronext wheat contract is set to record its best weekly performance: +13.25€/T or 7.5%. The rumoured large Chinese purchase of US wheat was the main catalyst behind today's dramatic 5% surge in CBOT wheat prices. The soft rebound in equity markets was also seen as supportive to agricultural commodities. Traders are starting to get concerned about dry conditions which are set to prevail across most of the Black Sea at least until early April. CBOT corn ended higher across the board for the first time this week, following wheat and soaring energy prices. The Argentine corn crop condition continued to deteriorate with only 35% of the crop rated 'Good/Excellent' as of Mar 18th against 38% last week and 55% last year. Saudi Arabia is in the market for a hefty 720KT of feed barley. To find out how this impacts your business and for insights, opinions, strategies and more get in touch. Or call 01223 608910.

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Crude oil surges 25%, rapeseed follows In a wake of a sharp 25% rise in crude oil prices and a weakening euro, Euronext rapeseed continued higher for a 3rd consecutive session, its best winning streak in over a month. The US soybean complex was also lending support with both spot CBOT soybeans and soymeal posting double-digit gains and soyoil up 2% on news that Argentina port activity could slow further in the coming days to attempt containing the coronavirus outbreak. Bear in mind that Argentina is the world's largest exporter of soymeal and soybean oil. According to the Buenos Aires Grain Exchange, 35% of the Argentine soybean crop was rated 'Good/Excellent' as of Mar 18th compared with 39% last week and 53% last year. To find out how this impacts your business and for insights, opinions, strategies and more get in touch. Or call 01223 608910. ​ Charts relevant to your grain prices: ​

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