02 April 2015 | Online since 2003



Grain and Oilseeds Market Report - 29th June 2012


Jonathan Lane, Gleadell’s trading manager, comments on grain markets:

WHEAT

- USDA reports US wheat harvest 59% complete, 48% last week and 27% average – key state of Kansas reported 96% harvested.

- USDA reports spring wheat crop in good/excellent condition at 89%, up 2% on the week.
- Trade sees USDA raising US soy, corn and wheat acres in Friday’s report.
- Western Europe crops are mostly in reasonable shape as harvest starts – improving outlook for French and German crops.
- Argentine government plans to allow 6mln t of wheat exports from the current crop being planted.

- Egypt has purchased an increased volume of domestic wheat this season – and won’t be looking to issue new international wheat tender until August.
- The USDA report corn crop in good/excellent condition at 56%, down 7% on the week – weather is seen stressing the crop at key pollination stage.
- Russia’s AgMin cuts outlook for Russian 2012/13 wheat harvest – projecting crop at 46-49mln t with exports at 16-16mln t.
- Ukrainian 2012 grain harvest under way, early harvested yields seen lower than last year.
- Canadian all-wheat plantings projected at 23.8mln acres, compared with previous figure of 24.3mln acres – still above last year’s area.

Summary

Markets remain driven by global weather concerns, with extreme heat in the Mid-west seen stressing US corn at a key development stage. The wheat harvest is well under way in the US, with the biggest winter wheat producing state all but finished, limiting further potential losses. Russian and Ukrainian grain harvests have just commenced with early reports indicating yields down on last year, confirming lower crop projections.

In Western Europe, crop prospects have improved with recent upgrades seen in estimates for the French and German wheat crops. In the UK, wheat prospects remain favourable, although heavy rainfall and high humidity conditions during flowering continue to promote fusarium development and increase associated mycotoxin risk.

OILSEED MARKETS - Willie Wright, Oilseed Trader

Weather has become the focus of attention in recent weeks with Corn and Soybean production being the biggest threat. Soybean prices have rallied 150 cents on weather issues with continued hot and dry weather in the US Midwest forecast into next week. We have the USDA quarterly acreage and stocks report out this week with traders looking for an increase in planted area although yield will be key in a weather market and this won’t be reported until the July 12th report.

Rapeseed prices continue to follow Soybeans, although physical activity in rapeseed has been light with farmers content with their pre-harvest commitments. Prices have rallied back to around £365 ex farm for harvest depending on location, if you add in quality bonuses these are still exceptional prices. UK rapeseed exports are expected to be a record this harvest with continued strong demand from the German biodiesel sector and production deficits in Europe.

Wider economic factors continue to undermine the commodity markets with crude oil demand slipping and the Global economy slows down. The Eurozone crisis continues to rumble on with no sign of light at the end of the tunnel, if fact, the market feels worse now than 3 years ago with Spain starting to acknowledge their banking problems and Spain & Italy’s borrowing cost’s rising to unsustainable levels.

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


25 March 2015
Accounts Assistant
Accounts Assistant Eden Farm Ltd. Eden Farm Ltd, a member of the Kitwave group, is a wholesaler and distributor of frozen foo...

20 March 2015
Pipefitter/ welder
Working predominantly in the dairy and pharmaceutical industries. Pipefitting, welding, service, installation, CSCS, dairy, p...

25 March 2015
AGRICULTURE Apprenticeship
Employer led training with an allotted assessor to help you to complete a work based Diploma in Agriculture....

26 March 2015
PhD Studentship - Evaluating the Role of Public-Private Partnerships in the Delivery of Ecosystem Services in UK Agriculture
Agriculture, Food and Veterinary. The research investigates the role of public-private partnerships in the delivery of enviro...

18 March 2015
Bank Support Workers CH23A
Are you able to work in a variety of settings, from shop to factories, farms to offices? Shift pattern Wednesday, Thursday an...




Top stories you may have missed
23 March 2015 | Cattle

UK butchers face difficulties to recruit...

Butchers in the UK are losing a generation through lack of training opportu...


20 March 2015 | Arable

Dust - the secret fertiliser?

NASA research has revealed how dust blown from the Sahara desert helps supp...


19 March 2015 | Arable

The Budget 2015: A Farmer's Budget?

“In the run up to the Budget 2015 most commentators were predicting that th...


17 March 2015 | News

UK's first floating solar power system l...

The UK’s first fully operational floating solar panel system has been unvei...


13 March 2015 | Animal Health

Labour and Conservatives clash over badg...

Axing the badger cull in England and Wales will save more than £120 million...


12 March 2015 | News

Solar could be cheapest energy source by...

By 2025, solar power could become one of the cheapest forms of energy in ma...


11 March 2015 | Finance

English buyers turn their attention to S...

Demand for Scottish farm land remains strong and continues to be better val...


9 March 2015 | Cattle

2020 vision for the Welsh red meat indus...

The Welsh red meat industry should aim to increase sales by at least 34 per...


6 March 2015 | News

MP raises egg industry concerns on trans...

Fears about the impact that a proposed transatlantic trade agreement could ...


Stay safe and legal when flying drones

The use of Unmanned Aerial Vehicles and Unmanned Aircraft Systems - or dron...