Shock election result helps underpin UK grain prices

CRM AgriCommodities

Member
Arable Farmer
Location
UK
Cereals
  • The sterling fell 2.5% during today's session following the failure of Conservatives to achieve the number of seats needed to have the majority they were looking for.
  • UK wheat prices were supported by the currency move although only slightly, with May-18 hitting new contract highs.
  • Barley prices discounts to wheat are regionally seen narrowing as wheat supplies dwindle towards the end of the season.
  • US markets were subdued ahead of this afternoon's monthly USDA WASDE report which was seen as bearish wheat and neutral corn [See Chart of the Day #1 & #2].
  • After recent price rises following concerns of dry weather across the US Midwest and Plains, forecast rains will provide some relief although the Central Plains look to remain dry.
  • French wheat ratings remain unchanged from last week at 75% good/excellent [See Chart of the Day #3].


Oilseeds
  • UK OSR prices were also supported by a weaker Sterling following the election, with a European market settling lower today but snapping a 3-week losing streak.
  • The USDA raised its 2016/17 Brazilian soybean production forecast to 114MT, above trade estimates.
  • Palm oil prices were higher today after recent drops as soy oil prices rose and wider veg oils found support.
Chart of the Day #1: USDA World Production

Chart of the Day #2: USDA World Stocks

Chart of the Day #3: French Winter Wheat condition

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