- Location
- UK
Cereals
In the aftermath of yesterday's strong rally, US wheat finish lower whilst EU origins remained firm over renewed export optimism.
LIFFE feed wheat was little changed despite the sharp rally in the Sterling against both the euro and the US Dollar.
After a second defeat for PM Theresa May yesterday over her Brexit deal, the Parliament is set to vote tonight against a 'No Deal' Brexit scenario.
According to the most recent data from HMRC, the UK remained a net importer of wheat in Jan-19 for a 26th consecutive month, a record. In the period Jul-18 to Jan-19, the UK exported less than 200KT of wheat (a 20-yr low) whilst imports were estimated at nearly 1.3MMT, the highest for this time of the year since the 2013/14campaign. UK barley prices remain under pressure due to the record UK maize imports observed since last September. In January 2019, the UK imported 388.6KT ie a record for the month and the 2nd largest monthly volume after December 2013 (388.8KT), taking the total to 1.7MMT or +39% from last year.
Matif wheat edged higher for a 2nd consecutive day after FranceAgriMer raised its forecast for 2018/19 French wheat exports outside the EU by 650KT to a 'conservative' 9.5MMT. As a result, the 2018/19 French soft wheat ending stocks were lowered from 3.0MMT in February to 2.4MMT, the lowest level since 2013/14.
CBOT wheat opened sharply lower, abandoning up to 3% on the May-19 contract after it gained more than 5.7% in the previous session. However, US grains attempted to recover in the afternoon with rumours about China having bought 3MMT of US corn ahead of a potential trade agreement between the two largest economies in the world.
Algeria was reported to have bought 450KT of wheat (source: Reuters).
Oilseeds
EU rapeseed prices snapped a 6-day winning streak - its best performance since the end of September - in the wake of a strengthening euro against the US dollar and weakening palm oil prices.
The European Commission introduced new limits on high indirect land use change-risk (ILUC) biofuels such as palm oil. 'These limits consist of a freeze at 2019 levels for the period 2021-2023, which will gradually decrease from the end of 2023 to zero by2030' (more info click here).
CBOT soybeans finished higher for a 2nd consecutive day on short covering and US-China trade deal optimism although the $9/bu mark is still difficult break.
Illinois-based Allendale Inc. pegged the2019 US soybean planted area at84.263Mac vs 85Mha for the USDA and compared to 89.196Mac last year.
Futures & Options prices
In the aftermath of yesterday's strong rally, US wheat finish lower whilst EU origins remained firm over renewed export optimism.
LIFFE feed wheat was little changed despite the sharp rally in the Sterling against both the euro and the US Dollar.
After a second defeat for PM Theresa May yesterday over her Brexit deal, the Parliament is set to vote tonight against a 'No Deal' Brexit scenario.
According to the most recent data from HMRC, the UK remained a net importer of wheat in Jan-19 for a 26th consecutive month, a record. In the period Jul-18 to Jan-19, the UK exported less than 200KT of wheat (a 20-yr low) whilst imports were estimated at nearly 1.3MMT, the highest for this time of the year since the 2013/14campaign. UK barley prices remain under pressure due to the record UK maize imports observed since last September. In January 2019, the UK imported 388.6KT ie a record for the month and the 2nd largest monthly volume after December 2013 (388.8KT), taking the total to 1.7MMT or +39% from last year.
Matif wheat edged higher for a 2nd consecutive day after FranceAgriMer raised its forecast for 2018/19 French wheat exports outside the EU by 650KT to a 'conservative' 9.5MMT. As a result, the 2018/19 French soft wheat ending stocks were lowered from 3.0MMT in February to 2.4MMT, the lowest level since 2013/14.
CBOT wheat opened sharply lower, abandoning up to 3% on the May-19 contract after it gained more than 5.7% in the previous session. However, US grains attempted to recover in the afternoon with rumours about China having bought 3MMT of US corn ahead of a potential trade agreement between the two largest economies in the world.
Algeria was reported to have bought 450KT of wheat (source: Reuters).
Oilseeds
EU rapeseed prices snapped a 6-day winning streak - its best performance since the end of September - in the wake of a strengthening euro against the US dollar and weakening palm oil prices.
The European Commission introduced new limits on high indirect land use change-risk (ILUC) biofuels such as palm oil. 'These limits consist of a freeze at 2019 levels for the period 2021-2023, which will gradually decrease from the end of 2023 to zero by2030' (more info click here).
CBOT soybeans finished higher for a 2nd consecutive day on short covering and US-China trade deal optimism although the $9/bu mark is still difficult break.
Illinois-based Allendale Inc. pegged the2019 US soybean planted area at84.263Mac vs 85Mha for the USDA and compared to 89.196Mac last year.
Futures & Options prices