Sharp recovery in OSR as harvest storms ahead

CRM AgriCommodities

Member
Arable Farmer
Location
UK
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Cereals

  • Wheat prices reached their lowest level since mid-June this week on improving US weather and an abundant Black Sea harvest.
  • French wheat harvest reached 91% complete this week according to FranceAgriMer [See chart of the day], 11 days earlier than the 5-year average.
  • French spring barley harvest is seen at 94% complete, 12% ahead of the average.
  • The sharp recovery in the US Dollar against both the euro and the Sterling due to good US job data lent support to the EU grains although trading volume remained lower than in the two previous sessions with the trade awaiting next week's August WASDE report.
  • Rains falling across the N.Plains and Western Midwest are not deemed as sufficient to resolve drought although cool temperatures limit further losses for now.
  • India purchases 300KT of Ukrainian wheat.
  • Weekly performance: Nov-17 LIFFE wheat -2.2%, Dec-17 Euronext wheat -3.4%, Dec-17 CBOT Wheat -4.1%, Dec-17 Kansas wheat -3.6%, Dec-17 Minneapolis wheat -3%, Nov-17 Euronext Maize -0.5%, Dec-17 CBOT corn -0.8%.


Oilseeds

  • OSR prices rallied today as both the Sterling and the euro lost ground against the dollar and crude oil found support.
  • Soybean falls were slowed after losing nearly 5% this week and seeing their largest weekly loss in value since July 2016.
  • In Brazil, Abiove raised once again its 2016/17 country's soybean production forecast to 113.8MlnT vs 113.2MlnT in June and it pegged its 2017 export forecast by 1MlnT to 64MlnT.
  • Higher export demand was supportive for palm oil prices today and the wider veg oil market. The MPOB will release its monthly palm update next Thursday.
  • Weekly performance: Nov-17 Euronext rapeseed -2.2%, Nov-17 ICE Canola -1.9%, Dec-17 CBOT soybean -4.7%, Dec-17 CBOT soymeal -4.4%, Dec-17 CBOT soy oil -2.9%, Nov-17 MDEX Palm oil -2.7%, WTI -0.7%, eurgbp +0.9%, gbpusd -0.7%.
Chart of the Day #1: French wheat harvest progress

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