Frontier Agriculture
Member
World markets
Chicago wheat was lower again yesterday as the forecast for next week indicates more beneficial rain for the Plains. The Western Plains are getting better coverage than indicated in earlier forecasts which is expected to alleviate recent dryness. Kansas remains a watch area, however, after the USDA reduced crop ratings to 38% good to excellent versus 40% the previous week. Corn futures also dropped for the first time in a week, consequently adding further pressure to wheat. The funds have extended their short positions in wheat and now sit with the largest net short since 31st January.
Australian wheat seems to have ended its positive streak after widespread rains arrived to remove drought concerns for now. The bulk of plantings will start in the next month.
As the rains arrive to alleviate crop issues for America and Australia, Europe seems to be taking its turn at a dry forecast. The 15 day forecast shows below average rainfall and vegetation maps are backwards on last year. More rain is needed through April as a result but this is no major concern yet. Matif ended slightly lower yesterday.
UK market
London wheat closed fractionally higher on old crop positions and slightly lower on new crop. This morning started lower across the board.
OSR market
There is little fresh news on the oilseeds front today. Matif rapeseed continues to trade sideways and is hovering around what seems to be a support level of €407-408/t. In the US, soybeans have been resilient considering the huge crops coming to the market by staying over $10/t, although they dipped to $9.97/t this morning. UK OSR prices will likely be more driven by currency over the coming weeks than crop fundamentals.
Chicago wheat was lower again yesterday as the forecast for next week indicates more beneficial rain for the Plains. The Western Plains are getting better coverage than indicated in earlier forecasts which is expected to alleviate recent dryness. Kansas remains a watch area, however, after the USDA reduced crop ratings to 38% good to excellent versus 40% the previous week. Corn futures also dropped for the first time in a week, consequently adding further pressure to wheat. The funds have extended their short positions in wheat and now sit with the largest net short since 31st January.
Australian wheat seems to have ended its positive streak after widespread rains arrived to remove drought concerns for now. The bulk of plantings will start in the next month.
As the rains arrive to alleviate crop issues for America and Australia, Europe seems to be taking its turn at a dry forecast. The 15 day forecast shows below average rainfall and vegetation maps are backwards on last year. More rain is needed through April as a result but this is no major concern yet. Matif ended slightly lower yesterday.
UK market
London wheat closed fractionally higher on old crop positions and slightly lower on new crop. This morning started lower across the board.
OSR market
There is little fresh news on the oilseeds front today. Matif rapeseed continues to trade sideways and is hovering around what seems to be a support level of €407-408/t. In the US, soybeans have been resilient considering the huge crops coming to the market by staying over $10/t, although they dipped to $9.97/t this morning. UK OSR prices will likely be more driven by currency over the coming weeks than crop fundamentals.