392 - Turning Crops

This is the market report for week commencing Monday 29th June.

So, yeah, stating the obvious, we've had an absolute scorch of a week.

I have a quick run through prices and we'll then have the usual standard market chat.

I'm later with the lads, but I'm afraid no Andrew this week.

So, feed wheat.

Old crop feed wheat has slightly tapered lower.

I think chunks of the demand have been satisfied, but there's still pockets of buyers there.

Ex-farm values are going to be sitting in the region of 176, would be today's value.

But... yeah there's little bits of business to do it is sparse i'll come onto it in a minute but it's still quite a good premium over new crop wheat so if you've got any old crop i say at the moment it's flog it because we're about to see new crop on us and the values are going to drift away pretty quickly at that moment and you're going to be flogging the harvest so yeah get on it get on with it please if you've got any old crop left to sell Harvest wheat, well let's count back, let's go about it another way.

Start with the November wheat.

November wheat ex-farm 168.

So then allowing for discount back from that, that would put harvest value in the 160 pound a tonne territory.

Now I totally sympathise, that's a really difficult value for everyone to be looking at.

Very nipped up against cost of production and certainly with all the yield uncertainty out there.

So difficult value to sell.

But in the short term, we have seen the market drift away.

It's been nudging back with the oil price.

Oil's back at $70 a barrel.

And it's that usual kind of harvest sentiment.

We're about to see combines in fields.

And certainly in parts of Europe, like the southwest of France, they are in wheat.

So you're seeing that kind of harvest pressuring moment.

But yeah, what does it mean? Hopefully not too much damage being done by this weather.

Certainly there's, beginning of the week, had a few conversations and there was optimism around, but I think there's definitely a bit of a change of tune towards the end of this week.

But let's hope that the sort of worst fears aren't as bad as we thought.