Frontier Agriculture
Member
World markets
US wheat futures moved higher yesterday for the second consecutive day. Temperatures in the US are warming up which should be helpful for spring drilling and field work. However, the little rain in the forecast for the next two weeks presents continued issues for winter wheat crops. The key state of Kansas has had the third lowest March/April rainfall in 30 years and none of the crop is headed, compared to 23% last year. The drought and building temperatures have caused some wildfires in the West Plains, with reports of some grassland and wheat grown for cattle feed being burnt off.
Argentina is still getting plenty of rain – two weeks ago there were drought concerns and worries about planting into dry seedbeds but this has been more than compensated for. Before long however, the rain will become an irritation to fieldwork. Australia on the other hand is still very dry and needs moisture for wheat planting soon.
Matif wheat closed higher yesterday, helped by stronger US markets and a weaker euro. There is some heat building in Central Europe but no real crop concerns. The Black Sea is dry, particularly in Russia and as a result some analysts are cutting estimates for the 2018/19 Russian crop. It seems very early to be making adjustments to the crop size but, even if the reductions are proved correct, they would only be 14% down on this year which would still be the second largest crop on record.
UK markets
London wheat closed higher yesterday with May only gaining £0.30/t but Nov 18 jumping up at the close to £147.90, £1.15/t on the day. Weather issues overseas remain the big driver for new crop markets. Old crop markets are steadier with imports coming into Northern ports easing some of the supply issues, although in some geographies haulage is still very pressured.
US wheat futures moved higher yesterday for the second consecutive day. Temperatures in the US are warming up which should be helpful for spring drilling and field work. However, the little rain in the forecast for the next two weeks presents continued issues for winter wheat crops. The key state of Kansas has had the third lowest March/April rainfall in 30 years and none of the crop is headed, compared to 23% last year. The drought and building temperatures have caused some wildfires in the West Plains, with reports of some grassland and wheat grown for cattle feed being burnt off.
Argentina is still getting plenty of rain – two weeks ago there were drought concerns and worries about planting into dry seedbeds but this has been more than compensated for. Before long however, the rain will become an irritation to fieldwork. Australia on the other hand is still very dry and needs moisture for wheat planting soon.
Matif wheat closed higher yesterday, helped by stronger US markets and a weaker euro. There is some heat building in Central Europe but no real crop concerns. The Black Sea is dry, particularly in Russia and as a result some analysts are cutting estimates for the 2018/19 Russian crop. It seems very early to be making adjustments to the crop size but, even if the reductions are proved correct, they would only be 14% down on this year which would still be the second largest crop on record.
UK markets
London wheat closed higher yesterday with May only gaining £0.30/t but Nov 18 jumping up at the close to £147.90, £1.15/t on the day. Weather issues overseas remain the big driver for new crop markets. Old crop markets are steadier with imports coming into Northern ports easing some of the supply issues, although in some geographies haulage is still very pressured.