THE 2010 GLEADELL GRAIN POOL

Following excellent results from the last two seasons, which come on top of a superb long term track record, the uptake for our 2010 wheat Pool has been extremely brisk. We are now close to reaching our tonnage limit for the Harvest and October/December periods. Our Harvest wheat Pool will close on December 1st and our October/December wheat Pool will close before Christmas. We would urge those of you who have still to decide whether to commit tonnage or which period to go for, to contact your Gleadell Farm Trader as soon as possible.

FEED WHEAT

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Feed wheat continues to be influenced by external factors, with US fund investors and a general weaker US$ adding support to the US commodity markets. Firmer crude oil and equity prices are also adding to the current bullish sentiment.

Strategie Grains see the EU-27 soft wheat crop at 129mmt, down 8% on last year.

Ukrainian Grain Association sees the 2009 grain crop at 48mmt with grain exports over 20mmt.

French farm ministry raises its 2009 soft wheat production to 36.38mmt, and barley to 15.15mmt.

UK wheat exports continue to run behind last year's pace, with the end of September exports being reported at 438,169t compared with 723,132t last season. Imports are continuing the strong start to the season with the end of September figure estimated at 426,564t, compared with only 314,989t over the period last year.

After a slow start to the season, weather conditions have been ideal for drying US fields allowing harvesting of the corn crop and winter wheat plantings to gather pace. As of Monday this week 89% of the corn crop was harvested and 95% of the winter wheat had been planted.

In summary fund managers faced with 0% interest rates and a weak US € have driven commodity prices higher. Wheat fundamentals have been overshadowed by this activity but the heavy worldwide supply situation should come back into focus when the funds have had their fill. Prices for 2010 harvest have attracted some interest as for most UK farmers they provide profitable gross margins. Selling a percentage forward is just plain good, common sense. A rare commodity in commodity markets these days?

SEED

Our red wheat variety, AC BARRIE, continues to attract attention, with a good return on investment, protected by the HOVIS buyback contract.

We have seed available for immediate sowing or for later sowings in spring, ask for details on this deal.

Thoughts now turn to spring sowing and in addition to traditional wheat and barleys, we can currently offer some crops, which will show a gross margin, in excess of wheat or barley.

PEAS

SAKURA – Marrowfat, top yielding variety with good standing power and resistance to pea wilt..seed is limited and needs ordering now, whilst stocks last. Only available linked to our buyback contract.
KABUKI – Marrowfat, an old favourite, which has made good contributions to farm incomes, over the years, again linked to a lucrative buyback contract.
GENKI – Marrowfat, the number one for “mushy pea” trade, stands well and yields particularly high for a marrowfat, available with or without a buyback contract.
We can also offer Large Blues, White and Maple peas, enquire for availability.

LINSEED

This crop is an interesting alternative for the spring.
The following varieties are available;-
LINOAL - from French breeder, Semence, offers a very high yield and early maturity, linked to an attractive buyback contract.
ABACUS - from Senova, consistent performer for a number of years, with very high yields and extremely early maturity.
LAGOON - another old favourite, which yields well, with very early maturity.
SUNRISE - Canadian variety also has performed well since 2002 and is very early maturing.

FERTILISER

Internationally the granular urea market is now showing considerable strength, prices have firmed in the US by $15/tonne over the last week.

Producers appear very comfortable, good volumes have been committed for November/December shipment and the market will remain firm going into Q1 2010.

Ammonium nitrate prices in the FSU have risen sharply over the last few weeks as domestic demand is set to increase and Turkish buyers have been active.

Ammonium Sulphate prices have also started to rise as buyers everywhere have suddenly realised how inexpensive this source of Nitrogen is. Further upward movement in prices is expected over the next few months.

The Phosphate market has “bounced “along the bottom for several weeks but sentiment has turned more bullish following the large amount of DAP recently bought by the Chinese which will bring US buyers in to the market.

The Potash market remains inactive and prices are flat, but today could now be a good time to look at spring NPK requirements as all other nutrients look firm going forwards.

YARA have terms available for delivery November – March and booking now looks an attractive option against today’s forward market.