Volatile day for grains following US open - 05/07

CRM AgriCommodities

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Arable Farmer
Location
UK
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Cereals


  • Grains were mixed through the morning before an explosive open to the US markets after the July 4th holiday, which saw US spring wheat trade up 50c$/bu before profit taking led to sharp declines [See Chart of the Day #1].
  • In the wake of the US wheat markets, Nov-17 UK LIFFE feed wheat touched a fresh contract high of £153/T before settling lower whilst Euronext wheat traded above 183€/T for the first time since November 2015 on the front month.
  • Corn prices followed a similar trend, albeit not so dramatic, but still the trade is starting to factor in damage to US corn as hot and dry conditions spread through midwest.
  • Profit taking was the main driver today rather than a change in the weather forecasts as funds sold long positions which were taken pre-weekend and early into the US open.
  • Farmer surveys continue to show a sharp deterioration in spring wheat crop conditions in the US.
  • US EPA are expected to keep the renewable fuel blending targets unchanged at around 19.24 billion gallons.
  • Egypt purchased 410KT of wheat of which 350KT Russian and 60KT Romanian at an average price of $200.43/T on a FOB basis vs $193.11/T on June 22nd.


Oilseeds

  • After testing the technical resistance of 372€/T, Aug-17 Euronext rapeseed closed nearly unchanged amid lower energy prices and the rapid progress of the EU harvest.
  • Crude oil prices drifted lower as it appeared that Russia are not going to be supportive of current production cuts.
  • A reduced palm production outlook has helped to firm prices and kept rapeseed prices supported along with soybeans.
  • Soybean prices have also been support today as weather risk continue to spread through the US.
Chart of the Day #1: Dec-17 Minneapolis Wheat (hourly, c$/bu)

Futures & Options prices
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 79 42.0%
  • Up to 25%

    Votes: 66 35.1%
  • 25-50%

    Votes: 30 16.0%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

    Votes: 7 3.7%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,291
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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