AGM Blog



‘Mind yer head’

Posted by on Jul 22, 2020 in AGM News | 0 comments

The Yorkshire wheat crop currently in the ground approaching harvest, has throughout its life from the point of sowing until today been worth on the low point £135 ex farm, to a high of £172 for November 2020.  More recently the range has narrowed. Prices quoted for November from March through to today have been £160 – £170 ex farm.  That is to say that despite all the bad news entering the market on the back of an appallingly wet autumn, reduced acres sown, spring drought, black grass infestation and crop die back, every...

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P.H.T

Posted by on Jun 22, 2020 in Market News | 0 comments

P.H.T

As grain traders and farmers, we are now entering the period of Pre harvest Tension (P.H.T).  That period of time where, as a farmer you have pretty much done all you can with the crop in the ground.  Regardless of establishment or agronomy, at this point in time, you have what you have, and the rest as they say is in the lap of the gods and good old mother nature.  From the grain traders perspective the vast majority of the previous year’s crop is traded and moved and the focus is on the coming harvest and the unknowns of...

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‘Pint Pot’

Posted by on May 18, 2020 in AGM News | 0 comments

‘Pint Pot’

So here we are in the middle of May and for the majority who want their shed empty for the end of June there are approximately 6 weeks left of the harvest 2019 crop marketing year. Our own rough on farm survey would suggest that there is quite a lot of grain out on farm that still needs to get into the ‘Pint Pot’ which was the estimated total demand/usage for UK cereals from this trading year.  Problem number one therefore is that the ‘Pint Pot’ of demand is now smaller than it was 8 weeks ago in the pre coronavirus...

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Market Report wc 11th May

Posted by on May 11, 2020 in AGM News | 0 comments

A wetter forecast throughout Europe added pressure to markets last week as the value of new crop began to decline before making a slight recovery towards the end of the week.   Much needed rainfall throughout the Black Sea apparently fell last week although this is still being assessed, particularly in Romania and Ukraine were the situation is especially dry.   Closer to home, mixed messages of rainfall throughout the UK have also blurred the market and it is difficult to gauge what is actually happening out...

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Yoda – ‘lucky you are’

Posted by on May 4, 2020 in AGM News | 0 comments

Yoda – ‘lucky you are’

Yoda –‘lucky you are’ The International Monetary Fund is now saying that the World will suffer its worst recession since the Great Depression!  In the USA 16.6 million people have filed for unemployment benefits in the last 3 weeks.  Here in the UK the Office for Budget Responsibility says GDP could fall by 35% in the second quarter of the year.  They are forecasting unemployment rising by more than 2 million to 10 percent of the work force at the same time. Grain markets and currency exchange rates react by the...

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Market Report wc 27th April

Posted by on May 4, 2020 in AGM News | 0 comments

As of Friday evening, the London LIFFE wheat future for November 2020 had gained £5.50/T on the Friday previous. This morning however, the future was valued £2.25/T lower at £165.50/T.   Over in Russia, the Agricultural Ministry stated last week that grain exports would completely cease once the 7 million tonne quota they set for the last quarter of the season was reached. Currently, 3.5 million tonnes has already been shipped and around 1 million tonnes is being loaded for export week. Estimates are therefore...

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Market Report wc 6th April

Posted by on May 4, 2020 in AGM News | 0 comments

Following yet another extremely volatile week, London LIFFE wheat futures are slightly firmer this morning.   Although some may from the peak of £175.25/T, the London LIFFE wheat future for November is valued at £167.00/T this morning, the equivalent of £160.00/T ex-farm for harvest collection.   Feed barley continues to trade at a £30.00/T discount to wheat.   As for old crop values, £155.00/T ex-farm for spot collection feed is indicated this morning, but buyer demand...

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Market Report wc 30th March

Posted by on May 4, 2020 in Market News | 0 comments

The US government and senate agreed to a new “stimulus package” last week in an attempt to reduce the impact of the coronavirus outbreak on the US economy. The package, which totals $2 Trillion, is yet to be approved by congress but is viewed as a step in the right direction. In response, the value of the dollar declined against the value of sterling.  The recent weakness in the dollar is supportive of the value of US priced commodities. This has pressured UK values over the past week. Fluctuations to...

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Market Update

Posted by on Mar 16, 2020 in AGM News | 0 comments

Market Update

I was undecided on writing a report this morning as I suddenly feel highly underqualified to provide you with a market commentary! But below are a few points worth noting. After topping 1.20 against the value of the euro earlier in the year post Brexit, the pound has dropped to 1.09 this morning. Usually, this would greatly benefit UK grain values as a weaker pound usually equates to greater export competitiveness. However, with all financial markets under pressure, the weaker pound has merely acted as “damage control” over the...

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Under Pressure

Posted by on Mar 13, 2020 in AGM News | 0 comments

Under Pressure

‘It’s the terror of knowing what the world is about’ ‘Turned away from it all like a blind man’ ‘Sat on a fence but it don’t work.’ One month on and the selected lines taken from the song Under Pressure by Queen seem to sum up the on-going events in the world at large and those closer to home in the grain trade also. Since we last wrote in February, stock markets around the world have fallen dramatically and News commentators are talking of a 2008 style collapse.  Oil prices this week fell to levels 30...

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