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Cereals
Oilseeds
Chart of the Day#2: US Winter Wheat crop condition
Futures & Options prices
Cereals
- With the Sterling losing momentum against both the US dollar and the euro, May-17 LIFFE Feed wheat hit today a 1-week high of £148.90/T, testing once again its medium term resistance trendline [See Chart of the Day#1].
- May-17 Euronext wheat ended an 8-day losing streak in good trading volume (more than 20K contracts) but gains eroded in the afternoon.
- India has reinstated a 10% tax on wheat imports in order to protect domestic prices.
- US Winter wheat condition continued to deteriorate in March with only 38% of Kansas wheat rated 'GD/EX' vs 43% last month and 56% last year. The steepest decline was observed in Kentucky - accounting for 2% of the national crop - with a 'GD/EX' monthly drop of 29pts to 43% and compared to 83% last year [See Chart of the Day#2].
- US wheat prices continued to hover around key support levels amid a strengthening US Dollar and forecast precipitation across the Plains.
- US corn plantings remain well ahead of average across the Southern states.
- According to the Australian Weather Bureau, there is a 50% chance to see the El Niño weather phenomenon developing in 2017. The recent heavy rain across Queensland is seen as beneficial ahead of the planting season.
Oilseeds
- In the wake of palm oil, canola and energy prices, Euronext rapeseed prices rallied strongly today, particularly on new crop contracts.
- After a 7-month winning streak, Euronext rapeseed is set to post its steepest monthly loss since July 2015 on a continuation chart basis: -4.55% or -19€/T as of tonight's closing price.
- US soy complex is treading water today ahead of Friday's USDA Prospective Plantings and Quarterly Grain stocks reports.
- Brazil could export more than 61MlnT of soybeans in 2017, +19% on last year [source: Oil World] as the country could produce a record 110+MlnT crop this year.
Chart of the Day#2: US Winter Wheat crop condition
Futures & Options prices