Agri-Shop Ltd
23 October 2016 | Online since 2003
Scrutton Bland

FarmingUK Logo
14 December 2012 09:47:43 |

Grains Market Report - 14th December 2012

Jonathan Lane, Gleadell’s trading manager, comments on grain markets.
The US market has continued to weaken over the past week, not helped by a negative USDA report on Tuesday.
A cut in the US export projection (albeit only 1.36mln t), was enough to trigger fund long liquidation as prices traded through long-term support levels. Over the past week, CBOT MAY13 has fallen just over 40c/bushel ($15 per tonne).
EU wheat has followed the US market lower, although a firmer € against the US$ has resulted in MATIF wheat only falling $7 over the period. EU wheat remains supported by increased export demand driven by weather-related supply problems for other major exporting countries, leading to the French farm office AgriMer raising its forecast of French wheat exports outside of the EU to 10mln t for the 2012/13 season.
Within the UK, the festive ‘wind-down’ seems to have started, with little demand interest and less active farmer selling.
The HGCA has published its definitive results for the 2012 crop, placing mean specific weight at 69.9kg/hl, down from the 5-year average of 76.7kg/hl and the lowest value ever recorded. (NABIM G1 and G2 only recorded specific weight over 76kg/hl on 8 and 9% of samples respectively).
By contrast, average protein content is relatively high, estimated at 12.5% compared with the 5-year average of 11.8%.
Although the USDA report was negative, the recent weakness may have been exaggerated. Black Sea wheat exports are all but over, Australian quality issues, reports that the Argentine government may lower the wheat export volume to 4.5mln t from 6mln t previously, and French wheat ‘sold-out’ on paper, does not paint a long-term bearish scenario for US wheat.
Recent losses and the weak US$ should generate some extra demand but, until tenders are issued and there is confirmation of US supplies being sold, lower prices may occur before any potential market recovery.


0 Comment


Please enter your name


Please enter your email

Please enter valid email


Please enter your comment

Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


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

Australia | 21 October 2016
Local bloc seeks to counter bid for Australian cattle empire

Nationalist lawmakers have teamed up with local ranchers to try to counter a bid involving Chinese buyers for the S. Kidman & Co. cattle empire, in what would be one of Australia’s biggest agribusines...

USA | 21 October 2016
Arizona farmers give back by donating milk to food banks

43 million gallons of milk have been dumped in fields across the country since the start of the year. That's why many American farmers have been forced to do with lower milk prices not bringing in...

USA | 21 October 2016
Your groceries may be cheaper, but farmers and supermarkets feel the pain

If you’re just a little irked that gasoline prices have edged up recently, maybe this will cheer you up: Groceries are a bargain. Average supermarket prices fell 2.2% in September from a year ago, ...

Canada | 21 October 2016
Farmers fail to rally to tax revolt talk

If farmland property taxes are too high, don’t pay them. That’s what Dugald farmer Edgar Scheurer suggested while commenting on Facebook about Manitoba Co-operator stories on skyrocketing farmland ...

United Kingdom | 21 October 2016
Woman killed in cattle attack on family farm

A woman has been killed after she was attacked by cattle on a family farm in Co Derry. The pensioner, who has been named locally as Brigid McKeefry and is aged in her 70s, was rushed to the Causewa...

Trending Now


Top stories you may have missed