In normal times we would be talking of markets winding down for Easter, but the holiday feels more like a footnote in current circumstances. Last week prices rallied on Friday to limit the weeks sell-off to £4/MT on LIFFE; clearly markets have now come to terms with the sharp virus demand spike which could be seen as relatively temporary.  Last week saw Egypt postpone a grain tender and Russia keen to publicise their own limits on grain exports for the rest of this season. It seems that everyone is trying to maintain calm in their domestic markets. Expect a quiet week price wise.

The French wheat crop in the ground was reported at 62% good condition (83% one year ago) . It’s a very low figure and suggests possibly a smaller crop this year. There is dryness in some parts of the Black Sea region but the Russian crop had a mild winter and is thought to be in excellent condition. Russia is now the world’s leading wheat exporter and they look certain to hold onto that position for Harvest 2020. This explains why the world markets now pays such close attention to any news coming out of there. Prospective world wheat stocks do look healthy, but we all know how vulnerable Russia’s crop can be to a hot dry summer.

Have a safe week,

Bartholomews Grain Marketing Team