GRAIN MARKETS

Jonathan Lane, ADM Agriculture’s head of grain trading, comments on the wheat market: US wheat prices are virtually unchanged on the week as fundamentals fail to ignite further buying support, despite firmer maize and soybean markets. Australian traders continue to offer wheat into Asian, Middle Eastern and African destinations as the country tries to find alternative outlets for its near-record harvest. Elsewhere, the picture is more supportive. Argentina’s Rosario grain exchange has lowered its projection of the country’s 2020/21 wheat crop to 16.7mln t due to continuing dry weather. The condition of Russia’s winter wheat crop remains a concern, despite some improvement following muchneeded rain. UK futures are marginally higher on the week. Traders have become squeezed exiting their November position and plenty of demand remains for the first half of 2021. The UK still has a balance sheet problem this season, with imports needed to fill the gap. Given the reduced EU surplus, it is uncertain where these imports will come from and what tariffs will apply after January 1.