- Location
- Lincolnshire
- US markets – soy higher on meal strength and concerns over Argentina. Corn down despite underlying support from ethanol numbers and concerns over Argentina. Wheat higher as weak US$ underpins prices, firming Black Sea offers and lower EU/global production forecasts.
- US President Donald Trump said that terminating the NAFTA would result in the ‘best deal’ to revamp the 24-year old trade pact with Canada and Mexico in favour of US interests.
- South American weather still has limited rainfall in Argentina for the 6-10 day period. Close to average rains are seen for most of Brazil over next 7-10 days, with some above average rainfall in the south. Temperatures seen average to below in most of SA over next 5 days.
- The drought in the heart of the Pampas Grain Belt is expected to reduce corn yields and cut up to 3.7mln t from the projected 2017-18 harvest, local analysts report. Last week the Rosario Exchange cut its forecast to 39.9mln t, BAGE still stuck at 41mln t.
- IGC increased their 2017-18 global wheat production by 1% to 757mln t on larger crops in Russia, Canada and Australia. Global stockpile was also raised, by 2% to 264mln t.
- IGC lowered their estimate for 2018-19 global wheat production by 2% to 742mln t, with a note that firm demand in 2018-19 should take stock piles down for the first time since 2012-13.
- Strategie Grains lowered their 2018 EU soft wheat production forecast to 141.6mln t from 142.3mln t previously, and from 142mln t in 2017. Too much rain lowering the planted area to a six-year low was cited for the reduction.
London May ’18 Settle £141.40/t – up £0.05/tonne from previous close
Paris May ’18 Settle €158.75 – down €0.50/t from previous close
CBOT Mar ’18 Corn Settle $3.5150/bushel – down 1.50cents/bushel from previous close
CBOT Mar ’18 Wheat Settle $4.2525/bushel – up 3.75cents/bushel from previous close
Currency Today:
GBP EUR 1.1330
GBP USD 1.3915
EUR GBP 0.8825
EUR USD 1.2280