- Location
- UK
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Cereals
Oilseeds
Futures & Options prices
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.
Futures & Options prices