Gleadell Daily Grain Comment - 11 July 2018

ADM Agriculture

Member
Trade
Location
Lincolnshire
  • US markets close – soybeans closed virtually unchanged. Corn closed lower (traded a new contract low), as weakness due to favourable weather for most of the US corn belt. Wheat lower on extended selling, following European market weakness.
  • US Midwest weather forecast has ridging for this week, bringing limited rainfall. Ridge then breaks down late next weekend, bringing soaking rains to most of the region. Temperatures will be running 80’s to low 90’s for most of this week.
  • US 11-16 day forecast has no major changes. Ridging hanging on across the Plains and western US, producing above average temperatures and below average precipitation in the Plains. The Midwest is to see average precipitation and close to average temperatures.
  • US commodity funds slowed their selling rate of Chicago traded corn and soybean last week, but the negative attitude largely remains, as US crop prospects are positive and mutual tariffs between the US and China have taken effect.
  • The Trump administration raised the stakes in its trade war with China, saying it would add a 10% tariff on an extra $200bln worth of Chinese imports, including hundreds of food products.
  • China’s 2018 wheat output will fall 5.6% y/y to 122.5mln t, CNGOIC reported, revising down from a previous forecast of 126.7, as the country’s wheat crop has been hit by bad weather reducing output. Corn output seen similar to last year at 216.5mln t.
  • CONAB estimated Brazilian soybean crop at 118.8mln t, up from 118mln t previously, also sees the Brazilian corn crop at 82.9mln t, down from 85mln t previously.
  • Egypt’s GASC purchased 175,000t of wheat for August 21-31 shipment from Russia at an average price of $220.26/tonne, which compared to the June 26th tender that was priced at $217.50/tonne and also went all to Russia.
  • French farm ministry estimates 2018 soft wheat production at 36.1mln t vs 36.6mln t in 2017. Forecast based on estimated yield of 7.3t/ha, down from 7.36t/ha y/y, and a crop area of 4.94mln ha, down from 4.97mln ha in 2017.
  • EU soft wheat exports for 1-8 July, the first reporting week of the 2018-19 marketing season, totalled 209,000t, down from 230,000t in the same period last year, data published by the EU Commission showed.
Last Trade Settlement:

London Nov ’18 Settle £167.80/t – down £3.40/tonne from previous close

Paris Dec ’18 Settle €183.25 – down €3.50/tonne from previous close

CBOT Nov ’18 Soybean Settle - $8.7150/bushel – down 0.50cents/bushel from previous close

CBOT Dec ’18 Corn Settle - $3.6075– down 6.25 cents/bushel from previous close

CBOT Dec ’18 Wheat Settle – $5.1000 – down 15.00 cents/bushel from previous close

Currency Today:

GBP EUR 1.1315

GBP USD 1.3250

EUR GBP 0.8830

EUR USD 1.1705
 

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