Frontier Agriculture
Member
World markets
Chicago wheat closed fractionally higher on Friday but was down over the week, with a lower net close for the second week in a row. The forecast shows more normal rain patterns for this coming week, bringing rain to most of the Plains, Delta and south US, although Western Plains may miss out. The market support that has been in place throughout the recent dry period is receding as rains bring relief for wheat crops. Funds have increased their shorts in wheat to 80’000 contracts, an increase of nearly 17’000 on last week.
Australia also had a better week of weather, with good rains falling across most crop regions which will be very welcome to improve soil moisture for planting. Australian futures slipped from their four month high as a result.
Last week saw high levels of tender activity with Egypt, Tunisia, Saudi Arabia and Algeria all in the market for wheat. This did little to support values, however, as much of this demand was expected and there is no concern over the security of old crop supplies in light of high stock levels and the impending Northern Hemisphere harvest. Matif futures ended lower over the week, further pressured by five week highs in the euro. The stock build that has been talked of in Russia has received extra attention with the news that Turkey has removed Russia from its list of permitted tariff-free origins. Turkey would usually be Russia’s second biggest export market after Egypt.
UK market
London wheat closed £0.35/t lower over the week, with May 17 ending at £148.80/t.
OSR market
The oilseeds complex continues to look very bearish as South America could produce 500 million bushels more beans than last year and the US 100 million bushels more. Combined with increasing palm oil production and Chinese crush margins at 20 month lows due to declining hog and poultry numbers, it isn’t difficult to see why Matif ended the week lower and Canadian canola is down 6% in a fortnight.
Chicago wheat closed fractionally higher on Friday but was down over the week, with a lower net close for the second week in a row. The forecast shows more normal rain patterns for this coming week, bringing rain to most of the Plains, Delta and south US, although Western Plains may miss out. The market support that has been in place throughout the recent dry period is receding as rains bring relief for wheat crops. Funds have increased their shorts in wheat to 80’000 contracts, an increase of nearly 17’000 on last week.
Australia also had a better week of weather, with good rains falling across most crop regions which will be very welcome to improve soil moisture for planting. Australian futures slipped from their four month high as a result.
Last week saw high levels of tender activity with Egypt, Tunisia, Saudi Arabia and Algeria all in the market for wheat. This did little to support values, however, as much of this demand was expected and there is no concern over the security of old crop supplies in light of high stock levels and the impending Northern Hemisphere harvest. Matif futures ended lower over the week, further pressured by five week highs in the euro. The stock build that has been talked of in Russia has received extra attention with the news that Turkey has removed Russia from its list of permitted tariff-free origins. Turkey would usually be Russia’s second biggest export market after Egypt.
UK market
London wheat closed £0.35/t lower over the week, with May 17 ending at £148.80/t.
OSR market
The oilseeds complex continues to look very bearish as South America could produce 500 million bushels more beans than last year and the US 100 million bushels more. Combined with increasing palm oil production and Chinese crush margins at 20 month lows due to declining hog and poultry numbers, it isn’t difficult to see why Matif ended the week lower and Canadian canola is down 6% in a fortnight.