David Sheppard, Managind Director of Gleadell's, recounts the latest developments in the global wheat market.

The first samples of UK wheat appear to show good quality – high specific weights, good proteins and yields not as bad as feared.  However, it is early days and too soon to make any big statements, but so far so good.

There are some good premiums available for spot movement – given the good forecast until around next Thursday and wheat coming to harvest very rapidly in some regions, these may not last long.

The extremely hot weather recently experienced in the USA has broken down in a huge number of thunderstorms.  Chicago markets, whilst mildly supported by some disappointing data from the spring wheat crop tour, have calmed down and are waiting for the next USDA report in August.

The standoff continues for the EU market.  Farmers are still unsure as to what they have to sell and consumers are waiting to see what is available.  Outside market influences - and concerns over the lack of agreement regarding the US debt ceiling - all add to the nervy nature of the current wheat market.  However, it is worthwhile noting that EU wheat - at a hefty $35–40 premium over Russian - does not look particularly cheap at the moment and current prices are still good levels for farmers.