UK futures dip amid mixed global market: Grain market daily

• It was a mixed picture for grain markets yesterday. May-26 UK feed wheat and Chicago wheat futures edged lower, while May-26 Paris milling wheat prices lifted slightly. May-26 UK feed wheat futures closed at £172.25/t, down £0.20/t from Wednesday’s close; the Nov-26 contract was down £0.50/t to £176.25/t.
• A rise in the strength of sterling weighed on UK prices, with £1 reaching its highest level since late October at €1.1434 yesterday (LSEG). Meanwhile, selling by speculative traders was a factor for Chicago wheat prices.
• However, Ukrainian exports through the Black Sea remain in focus after the latest conflict escalation on Tuesday, as do high global grain supplies. Paris wheat futures also found support from technical trading on the Dec-25 contract, which expires next week.
• May-26 Paris rapeseed futures fell €4.75/t (1.0%) to €473.50/t, with the Nov-26 contract down €4.00/t to €464.00/t. Expectations of an increase to the Canadian canola crop in today’s official production data weighed on prices. Further to that, there are expectations for higher Malaysian palm oil stocks in next week’s data due to be released (10 Dec) by the Malaysian Palm Oil Board.
• US soyabean exports to China also remain in focus. A speech by the US Treasury Secretary indicated that China would buy 12 Mt of US soyabeans by the end of February. The market had been working on a timeline of by January, so this initially pushed US prices lower, though further export sale announcements helped May-26 Chicago soyabean futures end the day almost unchanged.
• Data on cereals used in GB compound animal feed production in October, plus cereals used by the UK human and industrial sectors is now available.

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