Sentiment continued to strengthen international wheat markets this week, partially driven by weather concerns.

The relatively small amount of winter wheat planted in the UK this January has failed to inspire market confidence.

At current trajectory, UK wheat will likely be priced out of the market. The expectation is that UK imports will increase this year as a result.

Ongoing strikes in France are leading to logistical delays, forcing some French exporters to look to other grain markets to cover contracts. Industrial action has crippled the country’s ports and railways over the past month and despite some progress made this week, the strikes looks set to continue. Reports there suggest exporters could face a shortage of grain to ship in the second half of January.

Chicago grain markets didn’t record much of a reaction this week, after confirmation that agreement has been reached in phase one of the trade agreement between Washington and Beijing.

It will be some time before commodities such as soya beans, wheat and maize benefit from China’s pledge to buy more US agricultural products.

Closer to home, spot wheat from the trade saw prices remain around €200/t.

Spot barley is variable depending on location, with prices ranging from €170/t to upwards of €176/t.

However, movement of barley remains nominal at this time of year.

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