Grain markets rally higher, as selling seemed to run out following the recent break. Russian Ag Ministry reduce wheat export estimates for the season by 5mm to 30mmt (USDA 35mmt). Trade still estimating closer to a 25mmt total. IKAR reduce Russian wheat crop estimate by 400tmt to 69.2mmt. Sterling weakens this week as rhetoric from the UK and EU turns more negative surrounding negotiations. Approx. 15% below levels prior to the referendum vote. US funds estimated net short -1

Markets sell-off following bearish USDA data released on Wednesday, before consolidating somewhat late in the week. USDA headlines: US corn yields place at a record 181.3b/a, far above trade expectations. Russian wheat crop placed at 71mmt, up 3mmt on before and in line with the trade ranges. Russian wheat exports left unchanged at 35mmt – trade estimates circa 25mmt. Australian wheat production reduced by 2mmt to 20mmt, with exports also cut to 14mmt – down from 16mmt (trade

Markets continue to break with UK wheat demand centre stage following Vivergo’s closure announcement mid-week. Vivergo announce intention to close indefinitely at the end of the month, citing poor trading conditions. Annual usage at full capacity is in excess of 1.1mmt wheat. US weekly export sales 378tmt (wheat), 1.063mmt (corn) 1.27mmt (soybeans). Wheat sales in particular fell below expectations. Some suggestion Turkey may be restricting flour exports from flour made with

Markets recover somewhat this week following the recent sell-off, as talk of potential Russian export controls helps provide support. Speculation continues to circulate that Russia may look to put in place export restrictions of some kind. Russian ministers are due to meet on Monday to discuss. Exporters have been assured of one months’ notice before any tariffs would be applied – encouraging large early season exports (that combined with the weaker Ruble). Wheat exports this