Monday Market Briefing - 10th October 2022

Last week, markets yo-yoed around, ending £9/MT lower after changing direction four times across the week. That summed up the mood amongst traders at the European Bourse in Valencia where opinion was split as to whether the Black Sea corridor will be renewed in November. The deal will expire automatically if a continuation is not actively negotiated - and with almost half the tonnage shipped so far going straight into Western Europe – it seems unlikely Putin will sign without fuss.

We made good use of the opportunity to showcase UK crops on our trade-stand, and there is definitely keen interest from European buyers. We are looking forward to bringing these new bids to you as they materialise over the coming weeks. It’s a good time to be speaking to your farm trader about pre-Christmas movement requirements. We estimate Oct-Dec movement capacity in the UK to be about two-thirds full by now. This means everything is currently still open but pretty soon slots will start to run out on some grains.

Carries to later months are quite slim, which emphasises that nearby positions are currently still a little inflated by last minute consumer covering.  

Have a good week.