OSR at 6 week high, US harvest makes good progress

[CRM AgriCommodities]

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Cereals

• UK wheat spent most of the day in green territory in sympathy with Euronext which gained up to 2€ at 168€ as the euro continued to lose ground against both the sterling and the US dollar. Euronext's gains eroded at the close.
• However, LIFFE feed wheat was not able to settle above the £142/T resistance level on Nov-17 and it fell more than £1 at the close with the pound touching a more than 2 month high against the single currency.
• In a lack of fresh fundamental news, Chicago was also under the influence of the rise in the US dollar, making the commodities traded in USD less competitive on the export market. As a result, US grains were edging lower this afternoon.
• The US corn harvest is 11% complete vs 14% expected/last year and the 5-yr average of 17% [See Chart of the day #1]. Weather conditions remain clement and it should allow for a rapid progress of the harvest in the coming days.
• US winter wheat plantings are 24% complete vs 13% last week and 28% on a 5-yr average.
• According to UkrAgroConsult, Ukrainian farmers are set to increase their barley acreage due to a sharp increase in export demand and after a 13% decline in plantings observed last year. The AgMinister confirmed today strong exports since the beginning of the marketing season in July with about 10MMT of grain exported of which 5.6MMT of wheat, 3MMT of barley and 1.2MMT of corn. The country's 2017/18 total grain exports could exceed last year's record of 44MMT.
• Algeria is in the market to buy milling wheat for December shipment.

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Oilseeds

• In the wake of a rally across the broad veg oil and energy complex, Euronext rapeseed jumped to its highest in more than 6 weeks with the weakening euro also lending support. Domestic prices were on the rise too although capped by the rally in the sterling against the euro.
• Brent prices hit a more than 2-yr high of $59.49/bbl after Turkish president Erdogan stated that he was ready to cut off a key pipeline, before falling more than 1.3% on profit-taking and sharp gains in the US dollar.
• CBOT soybeans were down for a second consecutive session amid improving planting conditions in Brazil as well as expected rapid progress in the US soy harvest which is 10% complete, 1 pt ahead from a year ago but slightly below the trade expectation and the 5-yr average of 12%.
• Malaysian palm oil prices snapped a 5-day losing streak and posted a sharp rebound of more than 2% with growing concerns about the expected recovery in production.

Chart of the Day #1: US Corn harvest progress

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Chart of the Day #2: US Soybean harvest progress

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Futures & Options prices

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