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Sent to subscribers on 21.03.17 - Subscribe FREE here
Cereals
- The rally in the Sterling weighed on UK prices today and pushed new crop Nov-17 LIFFE Feed wheat to a 2-week low of £139.50/T.
- Euronext wheat caught up with yesterday's late selloff observed in the US. The May-17 contract dropped to its lowest since Feb 6th, below the psychological 170€ mark, as the euro continued its recovery against the US Dollar trading above the $1.08. For new crop, the September contract traded just 0.50€/T off the contract low of 167.50€ hit in early December 2016.
- According to different key winter wheat producing states in the US, the crop conditions remain well below last year's levels [See chart of the day]. Despite the supportive news, CBOT wheat traded to its lowest since the beginning of the year on confirmation of beneficial rain across the wheat belt. Steeper losses were seen on Kansas and Minneapolis exchanges.
- After the recent rumours circulating about a potential Turkish ban on Russia wheat imports, Ankara reiterated that there would be no ban but at the same time the Russian imports could halt.
- The Brazilian meat scandal could potentially curb domestic corn consumption whilst a record output of 91.5MlnT (USDA estimate) is expected.
- Euronext rapeseed finished mostly lower due to a rallying euro and a sharp correction in crude oil prices which were set to settle at their lowest in nearly 4 months.
- New crop Aug-17 Euronext rapeseed closed below the 370€ level for the first time since mid-October.
- May-17 CBOT Soybean continues to hover around the $10/bu mark on ample supplies coming from South America where weather conditions remain favourable.
- The weakness in the US Dollar lent support to the US soybean complex.
- Despite a nearly +2.7MlnT revision in Indonesian palm oil stocks to 3.75MlnT [Source: Gapki], Malaysian palm oil futures price posted a 1% daily gain amid a rally in soybean oil and doubts over the expected palm oil production recovery.
