Frontier Agriculture
Member
World markets
Chicago wheat futures closed slightly higher yesterday. The weekly crop update showed spring wheat harvest is now 89% complete, only slightly behind last year’s 90% at this point. The Canadian harvest is progressing well in warm dry conditions and crop estimates from Stats Canada may be revised higher as a result. There will also be a USDA report next Tuesday which the trade expects could adjust world yield stocks higher. US weekly exports were low at 252,000mt due to nothing being loaded in Texas after the disruption of Hurricane Harvey. Storm Irma is now making its way towards the US with landfall expected at the weekend. The path is not certain but estimated as heading to Florida at all-time record wind speeds so this impact could be felt in grain markets next week.
Australia has returned to very dry conditions with high winds and frosts which are impacting on crop potential. Australian wheat futures are sharply higher as a result. Harvest has started in Queensland.
Argentina has been experiencing heavy rainfall with more forecast. It is estimated that up to a third of the wheat crop has been affected by the wet conditions.
Matif futures closed higher yesterday despite little change in the euro and very slow exports. French ports are reported to be quiet with a smaller vessel line up than is usual. Today, French wheat is around £15/mt more expensive than Black Sea offers so there is no reason for exports to pick up for them short-term.
The Russian wheat crop is still running at 21% up on last year with harvest 63% complete which would mean a crop size in excess of at 81 million mt.
UK wheat
London wheat closed £1.05/t higher yesterday with Nov 17 at £141.30/t pushed up by strong domestic feed demand. Sterling firmed 0.5% in past 24 hours which is pressuring values this morning.
Farmers are slow to make sales after what has been a slow harvest for most of the UK . As a result some merchants and mills are short which is supporting spot values. UK soft wheat premiums, on the other hand, have dropped back slightly as demand falters.
Oilseed rape
Markets remain relatively unchanged/slightly lower.
The EU commission is about to decide on WTO/Argentine SME flows. How this will play out remains to be seen but this could significantly affect oilseed markets.
Early news from South America is that it is wet in Argentina and too dry Brazil! However, that is likely to change in the next two months as plantings season begins.
Chicago wheat futures closed slightly higher yesterday. The weekly crop update showed spring wheat harvest is now 89% complete, only slightly behind last year’s 90% at this point. The Canadian harvest is progressing well in warm dry conditions and crop estimates from Stats Canada may be revised higher as a result. There will also be a USDA report next Tuesday which the trade expects could adjust world yield stocks higher. US weekly exports were low at 252,000mt due to nothing being loaded in Texas after the disruption of Hurricane Harvey. Storm Irma is now making its way towards the US with landfall expected at the weekend. The path is not certain but estimated as heading to Florida at all-time record wind speeds so this impact could be felt in grain markets next week.
Australia has returned to very dry conditions with high winds and frosts which are impacting on crop potential. Australian wheat futures are sharply higher as a result. Harvest has started in Queensland.
Argentina has been experiencing heavy rainfall with more forecast. It is estimated that up to a third of the wheat crop has been affected by the wet conditions.
Matif futures closed higher yesterday despite little change in the euro and very slow exports. French ports are reported to be quiet with a smaller vessel line up than is usual. Today, French wheat is around £15/mt more expensive than Black Sea offers so there is no reason for exports to pick up for them short-term.
The Russian wheat crop is still running at 21% up on last year with harvest 63% complete which would mean a crop size in excess of at 81 million mt.
UK wheat
London wheat closed £1.05/t higher yesterday with Nov 17 at £141.30/t pushed up by strong domestic feed demand. Sterling firmed 0.5% in past 24 hours which is pressuring values this morning.
Farmers are slow to make sales after what has been a slow harvest for most of the UK . As a result some merchants and mills are short which is supporting spot values. UK soft wheat premiums, on the other hand, have dropped back slightly as demand falters.
Oilseed rape
Markets remain relatively unchanged/slightly lower.
The EU commission is about to decide on WTO/Argentine SME flows. How this will play out remains to be seen but this could significantly affect oilseed markets.
Early news from South America is that it is wet in Argentina and too dry Brazil! However, that is likely to change in the next two months as plantings season begins.