Monday Market Briefing - 5th December 2022

Markets had another tough week and must now be said to have broken out on the downside from what was a well established three month old support level. The war is expected to enter a quiet winter phase and we’ve simply run out of bad news to drive prices higher for the time being. OPEC are back to trimming oil output to prevent prices falling further, crude is back at Christmas 21 levels whilst gas remains stubbornly more expensive but well off the highs. In normal times buyers would surely view these lower levels as good insurance against the huge uncertainties of next year but they seem to remain so unsure of their forward order books as to remain disengaged other than in spot positions. Sellers have had ample opportunity to hedge forward input costs and will likely pull in their horns for now, possibly then it will be that lack of immediate selling pressure that stabilises things in the short term. 

The spell of quieter weather around the UK has allowed shipping schedules to get back on track and this should continue this week as the wind swings to the North and we finally get a bug-killing cold spell. We will have ships in Port loading throughout the Christmas/New Year period and there is a fair amount of grain planned to move throughout December ahead of these vessels arrival. So if you have sales open in the month make sure we know about your loading availability in good time please. We know opinion splits between those glad to get of the house and load by the 28th and those who shut down completely. 

Have a good week.