Monday Market Briefing - 22nd August 2022

Markets were lower all week and even the rally on Friday couldn’t prevent us from seeing a close for Nov LIFFE below the long-term £260 support level. Rain in the US forecast improved corn sentiment and disappointing economic data for China’s economy did not help. In the short term, this could represent a significant breakout, especially for pre-Christmas sellers, and certainly the pace of ex-farm selling has picked up as sample results flow through. Of course, with most markets now back more-or-less where they were before the war started, it’s possible the bear move will turn out to be overdone. We can argue about the scale of the war’s impact on supply but no one thinks it had no effect at all, and a steady trickle of ships out of Ukraine doesn’t change that.

At home, premiums for both milling wheat and malting barley samples are holding up well, if anything widening slightly as the base price dropped. There are good movement opportunities for all grades in the near months. However, please do check your heaps visually, and carefully, for grain-ergot which unfortunately is widespread again this year in both wheat and spring barley and not always picked up in spear samples. It’s often noticeable lying on the surface but remember, if you do find some, it should be handled as little as possible and always wash your hands afterward. Call the grain office for the best advice or if you’ve found something and aren’t sure what it is.

Have a good week.