No fooling grains with bearish WASDE report

CRM AgriCommodities

Member
Arable Farmer
Location
UK
Cereals
In a rather dull session until the opening of the US markets, both LIFFE and Matif closed in green territory on limited trading volumes particularly for the former exchange ahead of tonight’s new vote in Parliament.

Weekly EU wheat exports remain solid at more than 480KT against the season average of ~360KT. The 2018/19 total is now just 6.5% (~1MMT) behind last year’s pace vs more than 20% at the end of January.

CBOT wheat recouped Friday’s losses in sympathy with corn and soybeans with the trade dubious regarding the USDA’s 4.1% increase in the US corn planted area for the2019 harvest following historical flooding.

The first weekly USDA crop progress of the season will be released tonight.

According to last week CFTC data, money managers bought nearly 58KT contracts of CBOT corn ie cutting their net short position to 203K lots, still a record for this time of the season.

Matif maize could not follow today’s CBOT corn higher with the continuation of record EU imports of the feed grain. More than 590KT of maize were imported this week in Europe, taking the total to a record 18.7MMT, a yearly increase of 5.4MMT or +41%.

The US corn stocks (as of March 1st) figure which came in at 8.6Bbu was probably the most bearish data as it was more than 3% above expectations and the 3rd highest for the month on record.

Algeria is in the market for an unspecified amount of wheat.
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Oilseeds
May-19 Matif rapeseed snapped a 3-day losing streak in the wake of a strong rally in US soybeans after private exporters reported the flash export sales of 828KT of US soybeans for delivery to China during the 2018/19 marketing year.

Matif rapeseed was also supported by the 300Kha reduction in the 2019 EU rapeseed planted area which is now pegged at 19.3Mha (~20Mha last year) by France-based consultancy firm Strategie Grains.

Trade talks will resume once again with a Chinese delegation expected this week in Washington.

The trade is eager to see a firm deal between the two largest economies in the world but rumours continue to point toward a potential deal within the next ‘few’ weeks with better-than-expected economic data for China.

FCStone raised its 2018/19 Brazil soybean production estimate to 115.7MMT vs 113MMT last month.

Weekly EU oilseeds imports:
Rapeseed: 12.3KT | total: 3.4MMT (+5.1% y-o-y);
Soybeans: 348.3KT | total: 10.8MMT (+11.4% y-o-y);
Soymeal: 335.5KT | total: 13.1MMT (-9.2% y-o-y).
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SFI - What % were you taking out of production?

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    Votes: 80 42.1%
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  • 50-75%

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  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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