Frontier Agriculture
Member
World markets
US wheat gained 3% through the session yesterday supported by a rally in corn and beans. This was sparked by news and speculation over the biofuels industry and ideas that Trump could support the blending of ethanol into gasoline, which would support corn demand significantly. Chicago wheat futures closed off the highs but still up on the day.
Ongoing dryness in the US Plains is helping to underpin wheat markets. Rain and storms are occurring in the east of the Midwest this week, but the Plains still miss out with the 15 day forecast remaining dry. Funds still maintain a small net short in wheat. The Met Office is flagging increased probability of an El Niño weather event this summer which reduces the chance of extreme heat and dryness in the Midwest, but could impact Southern Hemisphere weather.
Matif wheat closed higher yesterday as Egypt bought French wheat for the first time in 13 months. Egypt made its largest tender in over three years yesterday, buying French, Russian, Romanian and Ukrainian wheat for the highest price it has paid yet this season. Yesterday's purchase means that Egypt has now bought 1.25mmt over the past two months.
UK market
London wheat moved higher yesterday supported by gains in the US. March gained £1.10/t to close at £144.25/t.
OSR market
Chicago had a rollercoaster ride yesterday as the US Renewable Fuel Association announced a presidential executive order to reduce the burden of administration and costs on refiners. Part of the deal was also to give greater incentives to increase volumes of ethanol and biodiesel into fuel. The executive order was subsequently denied by the White House and gains on Chicago quickly evaporated.
US wheat gained 3% through the session yesterday supported by a rally in corn and beans. This was sparked by news and speculation over the biofuels industry and ideas that Trump could support the blending of ethanol into gasoline, which would support corn demand significantly. Chicago wheat futures closed off the highs but still up on the day.
Ongoing dryness in the US Plains is helping to underpin wheat markets. Rain and storms are occurring in the east of the Midwest this week, but the Plains still miss out with the 15 day forecast remaining dry. Funds still maintain a small net short in wheat. The Met Office is flagging increased probability of an El Niño weather event this summer which reduces the chance of extreme heat and dryness in the Midwest, but could impact Southern Hemisphere weather.
Matif wheat closed higher yesterday as Egypt bought French wheat for the first time in 13 months. Egypt made its largest tender in over three years yesterday, buying French, Russian, Romanian and Ukrainian wheat for the highest price it has paid yet this season. Yesterday's purchase means that Egypt has now bought 1.25mmt over the past two months.
UK market
London wheat moved higher yesterday supported by gains in the US. March gained £1.10/t to close at £144.25/t.
OSR market
Chicago had a rollercoaster ride yesterday as the US Renewable Fuel Association announced a presidential executive order to reduce the burden of administration and costs on refiners. Part of the deal was also to give greater incentives to increase volumes of ethanol and biodiesel into fuel. The executive order was subsequently denied by the White House and gains on Chicago quickly evaporated.