UK rains expected whilst Euro hits new highs

[CRM AgriCommodities]

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Cereals

• EUR/USD hit new 2017 highs following weak US economic data and EU grains were put under pressure as a result.
• US corn plantings in line with expectation at 71% and in line with 5 year average.
• US winter wheat conditions deteriorate to 51% vs 62% last year.
• UK crops should find some relief on Wednesday after long dry spell as rains arrive (see chart of the day) - this is not expected to be prolonged.
• Heavy rains across the US could add delays to the planting season.

Oilseeds

• Crude oil finds early support as expectations of an extension to supply cuts provide support and Iran look to also back the deal.
• US soybean plantings are in line with 5 yr average at 32%. whilst strong exports support prices.
• Rapeseed prices were pressured by the stronger Euro despite support from global vegetable oil prices.

Chart of the Day - UK rainfall

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source: windy
Futures & Options prices

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