Grains lower ahead of June USDA WASDE report

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• Despite a weakening Sterling due to disappointing economic data, LIFFE Feed wheat could not resist the pressure coming from its European and American counterparts. However, ahead of tomorrow's June USDA WASDE report, volumes remained thin.
• COCERAL reduced its 2018/19 EU soft wheat production estimate by 1.7MMT to 138.8MMT from its March forecast. Persistent dryness in the northern part of Europe was the main reason behind the downwards revision. In France, the quality of the crop could be at risk because of ongoing precipitation across key producing regions.
• For corn, COCERAL reduced its 2018/19 EU production forecast by 1.5MMT to 60.3MMT whilst barley was up 0.5MMT to 60.8MMT.
• On the back of clement weather across the Midwest, US spring crops remained under pressure with Dec-18 CBOT corn reaching a fresh 4-month low on well above-average crop condition expected tonight.

• Overview of the weekly CFTC report - Futures & Options (weekly change):
  • CBOT wheat: net long 16,286 contracts (+ 968)
  • CBOT corn: net long 113,599 contracts (-88,828)
  • CBOT soybeans: net long 72,299 contracts (-34,799)

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Oilseeds

• The rise of the euro and the decline of the soybean complex weighted on EU rapeseed which continued lower for a 3d consecutive session.
• COCERAL lowered its 2018/19 EU rapeseed production forecast to 20.9MMT (-1MMT from the March estimate) compared to nearly 22MMT last year. The UK production is seen slightly above the 2MMT level.
• French farmers continue to protest against the use of palm oil for biodiesel production and its potential impact on rapeseed prices.
• CBOT soybeans continued lower for a 6th consecutive trading day amid positive condition in the Midwest and lack of clarity between China and the US.
• Overview of the May's MPOB report:
  • production: 1.5MMT (-2.1% mom);
  • exports: 1.3MMT (-15.7% mom);
  • stocks: 2.2MMT (-0.5%).

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Futures & Options prices

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[yellow belly]

I understand northern uk crops suffered in the wet spring

Many areas of the world still have potential yield problems
Some not fully reflected in the yield estimates
Notably Australia