GRAIN MARKETS

Jonathan Lane, ADM Agriculture’s head of grain trading, comments on the wheat market:

Global markets have posted substantial increases as they adjust to the potential loss of supply from the Black Sea region following Russia’s invasion of Ukraine, with any major retracement unlikely until a peaceful compromise can be resolved.

The US market had traded up almost $1/bushel ($35/t) week on week before moving higher again Thursday morning. EU and UK prices have followed the firmer global trend. Matif closed Thursday up €46 on the week at €315/t, while London closed up £27 at £245.25/t.

UK markets remain underpinned by global events, with delivered premiums still firming to the more north and western parts of the country, reflecting sharp rises in haulage rates.

While it is difficult to look beyond the current Russia/ Ukraine conflict, global exporters’ stocks are at a historically low level. A further bumper crop will be needed for any replenishment of stocks, placing weather centre stage.