Although the lack of UK wheat is a major factor this season, the global market continues to drive sales.
The US Department of Agriculture’s September estimate was for a global wheat harvest of 770.490 million tonnes in 2020/21, only 3mt more than its August estimate and 0.8 per cent higher than last year.
Coarse grain production, which includes grain maize or corn, is estimated at 1.46 billion tonnes, down nearly 5mt, because of a reduced US crop.
Total grain production is estimated to be 2.4 per cent more than last year at a record 2.730 billion tonnes, with use up 1.9 per cent and stocks at 2.7 per cent higher at 841mt.
James Bolesworth, AgriCommodities director at CRM, said: “The September USDA World Agricultural Supply And Demand report has proved to be conservative in estimates for Russian wheat production, maintaining an estimate of 78mt, while we maintain a view that production will be close to 81mt, with further USDA increases likely in October."
UK oilseed prices have been supported by a lack of supply of British rapeseed, the weak pound and a tighter world market.
Chinese demand for soyabeans and maize has been strong in recent months, which is also supporting the market. However, lower oil prices due to world economy fears are keeping a lid on prices, along with adequate oilseed supplies in Europe. Prices on the MATIF exchange are struggling to break the €385/t (£354/t) barrier.