Futures Close Report: 6th June 2017

An Egyptian court has decided to re-instate a zero tolerance policy on common grain fungus ergot.  Egypt last year scrapped a ban on ergot in grain imports after it effectively halted purchase tenders because trading houses refused to participate, saying the ban was an impossible requirement.  This resulted in the adoption of the international 0.05% tolerance level.  The ruling scheduled for next week will scrap that new system, effectively reinstating the ergot ban, according to lawyers who were informed of the court’s decision verbally on Tuesday. The verdict is expected to be formally announced on June 13 and is subject to appeal but must be implemented during the appeal process.

Concerns over crop damage in the US supported wheat markets following the USDA crop condition report which reduced Spring Wheat Good / Excellent rating to 55% from 62% last week.  This is mainly bread milling wheat with high protein content.

UK election ensures that domestic currency risk remains in focus, with markets also looking towards Friday’s monthly update to the USDA supply and demand for fresh direction.