- Location
- UK
Cereals
Oilseeds
Chart of the Day #2: Temperature and Precipitation across US
Futures & Options prices
- A cooler outlook in the US combined with month end position squaring both contributed to the factors which had grains on the back foot today.
- Harvest in the UK is back on after a wet weekend with forecasts indicating that good progress will be made this week. As a result, Nov-17 LIFFE feed wheat contract posted its 'biggest' monthly loss [-2.4%] since November 2016.
- Fund selling in the US today put pressure on grain prices on both sides of the Atlantic.
- The market remains fixated on US weather and with funds still long there remains a continued risk of selling pressure.
- According to a Reuters poll, analysts expect that there will be no change in today's US crop conditions report for wheat, corn or soybeans.
- Russian wheat prices are stabilising as harvest pace grows with yields reported to be above last year.
- July performance: Nov-17 LIFFE wheat -2.4%, Dec-17 Euronext wheat -6.1%, Dec-17 CBOT Wheat -9.4%, Dec-17 Kansas wheat -9.7%, Dec-17 Minneapolis wheat -4.4%, Nov-17 Euronext Maize -5%, Dec-17 CBOT corn -2.6%.
Oilseeds
- Stratégie Grains increase its EU OSR crop estimate by 800KT to a level now 8% above last year's harvest. This is following better-than-expected harvest results particularly in France but also the UK & Romania.
- Cooler temperature in the US was deemed as beneficial for the soybean crop as it enters its key yield determining period.
- UK harvest results for OSR continue to look fairly positive on the whole with wide spread reports of over 4T/ha and a likely increase in yields above the 5-year average.
- July performance: Nov-17 Euronext rapeseed +1.2%, Nov-17 ICE Canola +0.6%, Dec-17 CBOT soybean +4.3%, Dec-17 CBOT soymeal +2.9%, Dec-17 CBOT soy oil +5%, Nov-17 MDEX Palm oil +7.4%, WTI +6.7%, eurgbp +2.2%, gbpusd +1.3%.
Chart of the Day #2: Temperature and Precipitation across US
Futures & Options prices