Gleadell Daily Grain Comment - 9 May 2017

[ADM Agriculture]

• US markets – soy lower on talk of increased 2017 US supplies, higher US$, and low weekly exports. Corn sees little change as markets follow weather forecasts. Wheat lower as crop damage is less than expected, spring wheat planted on time.
• NASS reports US winter crop ratings down 1% point on the week, at 53% good/excellent (62% last year). Winter wheat 50% headed vs 55% last year. Spring wheat 54% planted vs 74% last year, and 60% as 5yr average.
• NASS reports US corn plantings 47% complete a/o 7th May, up 13% points on the week. Lower than the 61% planted at the same time last year, and lower than the 5yr average of 52%.
• US flour millers seen trying to find high-protein wheat supplies from last season’s harvest amid fears the developing crop could yield lower quality grain.
• China’s thinktank CNGOIC estimates 2017 soy output at 14.3mln t (13.1mln t in 2016). Corn at 211.5mln t (219.6mln t), wheat at 129.2mln t (128.9mln t), and rapeseed at 13.7mln t (14mln t).
• China’s soybean imports in April rose 13.4% y/y to a new record for the month of 8.02mln t. This is the fourth month in a row that imports have set a record for their respective month. CNGOIC raises import projection 6.4% to new record 92mln t for the season.
• Egyptian government has procured 803,000t of wheat since the start of its harvest in mid-April, down slightly from 874,000t purchased by this point last year. Government expects to purchase 3.8mln t of domestic wheat from the harvest.

Last Trade Settlement:
London Nov ’17 Settle £140.00/t – down £0.50/t from previous close
Paris Dec ’17 Settle €171.75 – down €1.25/t from previous close
CBOT Dec ’17 Corn Settle $3.8425/bushel – down 4.25 cents/bushel from previous close
CBOT Dec ’17 Wheat Settle $4.6925/bushel – down 7.00 cents/bushel from previous close

Currency Today:
GBP EUR 1.1855
GBP USD 1.2920
EUR GBP 0.8430
EUR USD 1.0895