- Location
- UK
Cereals
- Grains were focused on the much anticipated USDA report with an expectation of a reduction in World wheat stocks and an increase in world corn and soybean stocks.
- Wheat and corn stocks were revised sharply below expectations (1.6% and 2.8% respectively) which sent prices higher following the report.
- Corn production was lowered by the USDA in Brazil, Russia and Ukraine.
- Wheat traded higher throughout the day as a result with positions expecting a drawdown in global supplies following damaging weather conditions seen in recent months.
- Central US forecasts look favourable for the development of corn and soybeans over the next two weeks.
Oilseeds
- French, Polish and German rapeseed crops are expected to suffer as a result of dry conditions, early signs in the UK are indicating an average crop and in some cases better than expected. This is following an AHDB survey which estimated a 9% increase in the UK rapeseed area.
- Soybeans were stable ahead of the USDA report and following the recent sell-off after China/ US trade conflict, Global soy stocks were seen 11.5% higher than estimates sending beans tumbling.
- CASDE report (Chinese Agricultural Supply and Demand Estimate) cut its forecast for Chinese soybean imports due to higher prices resulting from the trade war (-2%).
- USDA kept Chinese soybean imports unchanged at 97MT.
Futures & Options prices
