Monday Market Briefing - 2nd December 2024

There is an old market adage in the grain trade that “if the bears have Thanksgiving, the bulls will have Christmas.”

The first part of this saying definitely rings true with US markets near 4-year lows and London May 25 futures now offered sub the markets lows of last June. US markets may well find some support due to impressive exports sales, but this can’t be said about demand in the UK which remains static. The lack of farm selling is sadly not supporting values and only adding to the surplus as it enables more imports. So, for the meantime and unless US markets suddenly rally sharply it is likely our markets stay on the defensive with focus shifting to the new year when grain has to come out, further pressuring the generous carry into early summer.

On the positive side delivered and milling premiums are still good and there is still space for feed wheat and low protein milling wheat this month.

 Malting markets seem to be going from bad to worse and with the Jan/Mar position full it is likely some of this material will find its way into the feed heap in the new year.

 Have a good week.