Wheat prices have fallen sharply in recent days and London wheat futures have lost more than £10/t from their highs early last week. The fall has been driven by the US agriculture market, particularly by US corn, which has lost over 12% of its value this week.

A host of bearish features have combined to galvanise the aggressive speculative fund sell off. A change in weather prospects is one of the main drivers for lower US corn and wheat markets with cooler and wetter conditions now arriving and expected to benefit spring drilled crops. US markets were also pressured by speculation that the Biden Administration might allow a reduced blending of corn ethanol into fossil fuels as blenders come under severe financial pressure to meet their mandates. 

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