Frontier Agriculture
Member
World Markets
Wheat markets remain under pressure and US wheat has hit new contract lows. This follows last week’s increase to the Canadian crop size and the continued aggressive export pace in Russia.
Yesterday saw the publication of an USDA report but this contained only minor adjustments which had no real impact on prices. Production was raised in Canada backing up last week’s increase from Stats Canada. The EU was also raised estimates by 1 million mt. Meanwhile, Australia was left unchanged at 21.5mmt despite ABARES' recent crop reduction to 20.3 million mt. Everywhere else was left unchanged resulting in overall world production up. World usage was increased, US exports were lowered slightly but this was more than offset by Canadian exports which were raised by 1 million mt. Overall world stocks were increased by just under 1 million mt.
Matif wheat closed slightly higher yesterday on the back of a weaker euro. The USDA raised EU production which was not surprising following recent increases from Brussels and Coceral. More questionable was that EU exports were still unchanged, despite the very slow pace in the first half of the season. They are now down 24% on last year’s pace and an annualised 8 million mt behind the current USDA number.
UK Wheat
UK wheat has continued to drift lower with no fresh news or demand to drive it higher. Spot wheat is still required to some destinations to maintain December intake and this offers a good opportunity for farms in the right locations to take advantage of good values in an otherwise falling market. Speak to your local farm trader for more detail about opportunities in your local area.
Wheat markets remain under pressure and US wheat has hit new contract lows. This follows last week’s increase to the Canadian crop size and the continued aggressive export pace in Russia.
Yesterday saw the publication of an USDA report but this contained only minor adjustments which had no real impact on prices. Production was raised in Canada backing up last week’s increase from Stats Canada. The EU was also raised estimates by 1 million mt. Meanwhile, Australia was left unchanged at 21.5mmt despite ABARES' recent crop reduction to 20.3 million mt. Everywhere else was left unchanged resulting in overall world production up. World usage was increased, US exports were lowered slightly but this was more than offset by Canadian exports which were raised by 1 million mt. Overall world stocks were increased by just under 1 million mt.
Matif wheat closed slightly higher yesterday on the back of a weaker euro. The USDA raised EU production which was not surprising following recent increases from Brussels and Coceral. More questionable was that EU exports were still unchanged, despite the very slow pace in the first half of the season. They are now down 24% on last year’s pace and an annualised 8 million mt behind the current USDA number.
UK Wheat
UK wheat has continued to drift lower with no fresh news or demand to drive it higher. Spot wheat is still required to some destinations to maintain December intake and this offers a good opportunity for farms in the right locations to take advantage of good values in an otherwise falling market. Speak to your local farm trader for more detail about opportunities in your local area.