Written Commentary
London Wheat Report
A slightly more positive day across London today, with the Nov-25 contract trading £0.55 up at the end of the day. Nov-26 also saw some trades through the contract, also ending the day in the green, up £2.40. The May-26 contract bucked the trend, ending the day down £0.65. Matif also saw a day of green on the screen across all traded contracts, following Chicago wheat up.
It was reported today by the Ukrainian National Academy of Agrarian Sciences that current dry weather in southern Ukraine during sowing and plant growth stages has significantly reduced winter wheat and barley yields. Ukraine is a traditional grower of winter wheat and barley, but its harvest depends on favourable weather during sowing in autumn, a mild winter and sufficient moisture in spring. It has been reported that across swathes of southern Ukraine, a prolonged drought that began last year and affected soil moisture reserves was compounded by high spring temperatures with dry weather as well as late frosts in April and May. So far, based off harvest figures for this year, grain yields averaged 2.53 tonnes per hectare. This figure is compared with 3.44 tonnes seen a year earlier. However, based on other reports, low output in southern regions could be offset by bigger harvests in central and western regions.
Across in the US of A, today saw evidence in the prices on screen of expected favourable crop weather continuing across the U.S. Midwest, reinforcing the prospect of a bumper harvest. This sentiment kept a lid on corn prices, keeping them close to near contract lows. The U.S. Department of Agriculture surprised the market in a report on Monday, which showed better-than-anticipated corn crop conditions that were the best since 2018 for the time of year.
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