MARKET REPORT - 24 JULY 2008

FEED WHEAT

The HGCA estimates GB plantings higher – wheat up 14% at 2.07 mln ha – barley up 12% at 981,000 ha

For wheat, this could mean production at 16.5 mln t to over 17.0 mln t if crops deliver. This would put the UK surplus at 3.0 to 3.5 mln t.

The Ukraine, Bulgaria and Romania are continuing to harvest good to excellent crops with ready sellers of large volumes.

In France, the wheat harvest is continuing well – with crop estimates now edging up over 37 mln t.

Markets have continued to decline, with the odd period of profit taking over the past week. If the UK surplus is as anticipated we need something to change to prevent a further decline. Currently the downside is a further £10 per tonne given current parities.

MALTING BARLEY

Reports of very big yields and very good quality out of France have sent the market into panic and prices have dropped dramatically.

In the UK the winter barley harvest is well under way and yields and quality are so far very good.

Prices here have followed the continent.

Harvest movement is proving very difficult as growers that have wisely sold on buyback find that they have a surplus still to move.

We still have buyback contracts available for harvest 09 and growers needing movement are again advised to book their space sooner than later.

OILSEED RAPE

Favourable weather conditions, a sharp decline in crude oil prices and further selling pressure as a result of the resolution on the export tax controversy in Argentina, have all conspired to take the CBOT soya complex sharply lower over the last week.

The European rapeseed market has got hammered lower during the last 5 trading days with the November contract on the Matif rapeseed futures market down EUR37!

Harvest is now well underway in Europe. In Southern and Middle Germany 25% has been harvested and yields look good - production should be around last years levels despite less planted acreage. In France reported yields are above last year at 3.5-4mt/Hct and the early cut seed in the UK has seen yields between 3-3.7mt/hct.

In the Ukraine the harvest is now 60% complete and the latest production estimate is 2.7mln t and prices have fallen some US$30-35 since the end of last week.

OATS

Gleadell have a range of milling oat contracts for harvest 2009 to suit growers.

We are targeting varieties and can offer a premium for specific qualities in certain regions.

Please phone the office or your farm trader for details.

SEED

OSR seed is selling well and we have all the major varieties available including the top new variety EPURE.

Barley, oat and wheat seed is also selling well and we advise that you book your requirements as soon as you can because most of the popular varieties are selling fast. Please contact your local farm trader for details of seed availability and buyback contracts.

It has been another hot week in the Nitrogen market with prices of all products on the rise.

The Urea market in particular is very strong worldwide with big gains posted again in all areas and values have now doubled in the past 3 months.

The worlds largest urea importers, the US and India, are both active in the market, giving suppliers now the choice of where to sell.

Gleadell have both Prilled and Granular Urea product in the UK now so phone your local office for terms.

Ammonium Sulphate/Nitrogen remains difficult to source, but under the new quota system undertaken by the European Commission, from August product will start to arrive from countries where it has been not possible in the past

Gleadell have Ukraine 34.4% Imported AN to offer for August/September delivery.

CAN was once an option but today Germany are short of product, there is reduced supply from the Czech republic, Holland, Poland and other usual suppliers.

Gleadell’s advice today is the same as it has been for 3 months, buy today.