- Location
- Lincolnshire
- US markets – soy lower, but off the lows as oil markets rebounded. Corn lower (new contract low) as prices remain in downtrend with first notice day liquidation. Wheat lower (new contract low) on talk of higher Australian production, cheaper Egyptian tender results.
- CBH Group reported that Western Australia’s wheat crop may total 12.5-13.0mln t in 2017-18 due to better yields, compared with previous estimates as low as 9.0-9.5mln t.
- Argentine Agroindustry Minister reported that Cordoba, which produces about 40% of the country’s corn output, has a high risk of water deficit. Water reserves have already been running low with corn plantings seen at 36% complete a/o Nov 23rd.
- SAm weather remains favourable with ongoing rains in Brazil this week and two systems in Argentina which could bring 50% plus coverage of the growing region. 10-15 day forecast turns drier in Argentina into the FH December which could delays plantings.
- Chinese imported soy inventories increased last week as crushers continue to settle their GMO safety certificates, with stocks put at 6.33mln t, up from 5.97mln t the previous week.
- Egypt’s GASC purchased 120,000t of Russian wheat for January 11-20 shipment. Prices paid related to a $2/t discount from previous tender on Nov 16th. Only Russian/Romanian wheat offered, with Romanian prices being $5-10 too expensive.
- Matif wheat made new contract lows following the US market lower and despite another dip in the Euro.
- UK £ firms on news that the UK has offered a larger potential ‘divorce bill’ to the EU, although the pro-remain group commented that the ‘colossal cost of Brexit; (50bln euros) would be a ‘bitter pill to swallow’ for voters.
London May ’18 Settle £141.75/t – up £1.15/t from previous close
Paris May ’18 Settle €162.75 – down €1.25/t from previous close
CBOT Dec ’17 Corn Settle $3.3625/bushel – down 2.50 cents/bushel from previous close
CBOT Dec ’17 Wheat Settle $4.1075/bushel – up 1.25 cents/bushel from previous close
Currency Today:
GBP EUR 1.1290
GBP USD 1.3405
EUR GBP 0.8855
EUR USD 1.1870