- Location
- Lincolnshire
- US markets close – soybeans lower on bearish USDA data, projected record US soybean yield. Corn lower on projected record US corn yield. Wheat lower on weaker soy/corn markets and higher than expected foreign supplies.
- For the w/e 7th August CFTC report showed managed money extended their Chicago wheat long position by 11655 contracts (now seen 64587 contracts long), while also extending their Kansas City wheat long position by 15150 contracts (now seen 55086 contracts long).
- For the w/e 7th August CFTC report showed managed money reduced their Chicago corn short position by 22493 contracts (now seen 29705 contracts short), while also trimming their Chicago soybean short by 2388 contracts (now seen 56283 contracts short).
- US Midwest weather forecast has no major changes with rains seen for much of the region this week, temperatures running average to above average.
- US 11-16 day weather forecast has models showing close to average rains in the Midwest with temperatures average to a bit above average.
- For the w/e August 8th July, US all wheat sales are running 29% behind y/y, with shipments 38% behind y/y, and the USDA forecasting an 8% increase. Corn sales 6% ahead y/y, with shipments 1% behind y/y vs a 5% increase forecasted by the USDA.
- Brazil’s president signed into law a bill authorising the government to set minimum truck freight prices, drawing criticism from farm groups who said the measures would drive up costs for food.
- A heatwave in North Korea had led to rice, maize and other crops, withering in the fields, with potentially catastrophic results.
- A low harvest in Europe, and Riyadh’s decision to cancel grain imports from Canada, might give Ukraine a chance to export wheat to Saudi Arabia again this season, although the country has agreed with traders maximum volume of wheat to be exported this season.
- The condition of France’s maize crops declined again in the w/e Aug 6th, data from FranceAgriMer showed, suggesting further impact from a recent hot, dry spell. The office rated the crop as 62% good/excellent, down from 66% in the previous week.
- A wet weekend for much of the UK will not have aided harvest progress, however a good proportion of cereals are now in the barn, with only the North/NW/Scotland with any real proportions left to cut. Yields have been variable across the country and variety, while quality generally seems to be good enough.
London Nov ’18 Settle £192.255/t – down £0.15/tonne from previous close
Paris Dec ’18 Settle €212.75 – down €0.25/tonne from previous close
CBOT Nov ’18 Soybeans Settle - $8.6175/bushel – down 42.25 cents/bushel from previous close
CBOT Dec ’18 Corn Settle - $3.7175/bushel – down 11.00 cents/bushel from previous close
CBOT Dec ’18 Wheat Settle – $5.6950/bushel – down 17.00 cents/bushel from previous close
All markets continue to weaken this morning as follow-through selling evident after Friday bearish USDA data.
Currency Today:
GBP EUR 1.1210
GBP USD 1.2760
EUR GBP 0.8920
EUR USD 1.1380