Frontier Agriculture
Member
World markets
US wheat closed slightly higher yesterday having regained some of the losses on Tuesday which had pulled Chicago down to its lowest close since mid April. Talk of oversold conditions gave some support yesterday despite more reports of good and improving crop conditions. US wheat crop ratings have increased to 61% good to excellent, the best rating in a decade. Results of the Kansas crop tour will be released later today but early reports are favourable, with talk of yields improving on this season by 5-15 bushels/ha. Crop development is thought to be a week ahead due to mild conditions and these forward crops with good yield expectations are expected to go a long way in making up any anticipated drop in production after a reduction in acres sown.
Canada has some moisture in the forecast but more will be needed to improve soil moisture. Australia remains dry in the west but has rain everywhere else which will improve the outlook for crop ‘16 drilling. There are reports that Australian wheat has been sold to India.
After extreme rainfall in Argentina and dryness in Brazil causing issues for corn crops, weather has now improved for both countries, though conditions are still far from perfect.
EU markets were quiet with many preparing for a long weekend. Crop conditions are good and Poland has finally received the rain it needed. Continued strength in the rouble is pushing Russian wheat values higher, allowing more opportunity for exports in other countries. The pace of EU exports is starting to close the gap on last season after a good week; with 900,000mt of licences given, the season total is 27.79mmt and now only 7% behind last season.
UK market
London wheat closed slightly higher yesterday, with Nov ‘16 gaining £0.50/t to close at £117.50/t.
OSR market
Given the recent increase in values, setbacks and volatility are possible approaching next week’s USDA report which will bring fresh news to the market.
Today’s US export figure is eagerly awaited by the trade with expectations of around 600,000 to 800,000t.
US wheat closed slightly higher yesterday having regained some of the losses on Tuesday which had pulled Chicago down to its lowest close since mid April. Talk of oversold conditions gave some support yesterday despite more reports of good and improving crop conditions. US wheat crop ratings have increased to 61% good to excellent, the best rating in a decade. Results of the Kansas crop tour will be released later today but early reports are favourable, with talk of yields improving on this season by 5-15 bushels/ha. Crop development is thought to be a week ahead due to mild conditions and these forward crops with good yield expectations are expected to go a long way in making up any anticipated drop in production after a reduction in acres sown.
Canada has some moisture in the forecast but more will be needed to improve soil moisture. Australia remains dry in the west but has rain everywhere else which will improve the outlook for crop ‘16 drilling. There are reports that Australian wheat has been sold to India.
After extreme rainfall in Argentina and dryness in Brazil causing issues for corn crops, weather has now improved for both countries, though conditions are still far from perfect.
EU markets were quiet with many preparing for a long weekend. Crop conditions are good and Poland has finally received the rain it needed. Continued strength in the rouble is pushing Russian wheat values higher, allowing more opportunity for exports in other countries. The pace of EU exports is starting to close the gap on last season after a good week; with 900,000mt of licences given, the season total is 27.79mmt and now only 7% behind last season.
UK market
London wheat closed slightly higher yesterday, with Nov ‘16 gaining £0.50/t to close at £117.50/t.
OSR market
Given the recent increase in values, setbacks and volatility are possible approaching next week’s USDA report which will bring fresh news to the market.
Today’s US export figure is eagerly awaited by the trade with expectations of around 600,000 to 800,000t.