- Location
- UK
- Markets bought the rumours that large areas of US wheat had been damaged by a snow storm as confirmation of damage significance remains to be seen.
- May-17 wheat returned to the technical resistance level of £150/T following US weather concerns.
- CBOT wheat traded the information whilst EU markets were on bank holiday and then today saw a sharp correction during afternoon trade.
- Debate in the trade around the damage to crops and need for corn replanting is ongoing.
- Prospects of further rains on areas of already underwater US corn are adding further risk into the market.
- Spring wheat plantings in the US remain well behind the 5 yr average with corn higher than trade estimates (see chart of the day)
- Fund panic buy out of record short grain positions following weather scares.
Oilseeds
- Soybean planting pace remains behind the trade estimate and hampered by wet weather.
- Concern remains around the impact of a recent European cold snap on EU rapeseed production.
- Palm oil prices helped underpin rapeseed values as they rose on higher export demand and soy oil prices.
Chart of the Day#2: US winter wheat ratings
Futures & Options prices
