Post-USDA: Grains down, oilseeds up and sterling fall underpins domestic prices

[CRM AgriCommodities]

Cereals

• Markets were on hold and waiting for the USDA report. The corn acres were higher than expected at 94.148Mln acres and v trade estimate of 92.896. All wheat acres were 50.816Mln acres v 49.869 trade estimate. Corn stocks were higher than expected and wheat as expected.
• UK prices were somewhat supported by the weak sterling as Euronext made new contract lows alongside the US wheat markets.
• Back to trading weather again and market unprepared to price in more downside ahead of the US independance day long weekend.
• EU and US export and sales data were largely ignored today (See chart of the day).
• Jordan issues new tender for 100kT of feed barley.

Oilseeds

• Markets were on hold and waiting for the USDA report. The soybean acres were lower than expected at 83.688Mln acres and v trade estimate of 83.834. Soybean stocks were higher than expected.
• UK prices were supported by the weak sterling and EU prices were reluctant to follow soybeans higher.
• Malaysian and Indonesian Palm oil exports fell in June.

Of Interest

• The GBP collapsed at 16h00 GMT after trading mostly higher for most of the day as BoE Carney says further easing likely during the Summer.
• EU agriculture commissioner wants quick Brexit deal and wants to help dairy sector!

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