23 October 2016 | Online since 2003
Less co2 Limited

FarmingUK Logo
30 March 2012 08:33:13 |News,Slurry and Irrigation

Market Report - 30/03/2012

- US farmers plant corn early due to warmest March on record ’ risk of damaging late-spring frosts.

- EU’s crop marketing unit estimates 1.7% rise in 2012 soft wheat crop’s yield to an average 5.67t/hectare.

- Russian Prime Minister Putin sees 2012/13 grain export at 25-27mln t ’ crop similar to this season ’ 94mln t.

- Ukraine have exported 12.6mln t of grain so far this season (3.2mln wheat/7.1mln corn/1.8mln barley). There are reports the country is to harvest at least 45mln t of grain in 2012 ’ domestic consumption of 26mln t.

- Egypt’s GASC purchases 120tmt (60tmt US / 60tmt Argentine) for May 11-20 shipment ’ prices well below EU values.

- USDA attach’ forecasts Australian 2012/13 wheat production falling to 27mln t due to declining crop area.

- USDA attach’ predicts Argentine 2012/13 wheat production falling to 12mln t due to lower planted area.

- Argentine ministry estimates 2011/12 soybean crop at 44mln t (USDA at 46.5mln), corn at 20.8mln t (USDA at 22.0mln).

Markets have been trading with caution ahead of the USDA planting and stocks reports due out Friday 30th. The recent dip in corn price seems to have already factored in that there will be more planted acres for corn. Traders are nervous about the USDA stock report because it has not matched recently with market expectations, resulting in big price swings. Corn futures have fallen by the daily limit on the day of the past three quarterly stocks reports.
Wheat markets are currently in a tug-of-war battle between ideal planting/growing conditions in the US and continued weather concerns across Western Europe. Winter crop losses are still being assessed in France, and the market focus is now on the spring drought rather than the winter freeze. EU wheat prices are well out against US/South American origins but, with French and UK balance sheets looking finely balanced, this currently is of little concern.
Market direction will be driven by Friday’s reports and, if deemed bearish, will produce the usual ’knee-jerk’ reaction. One word of caution is that larger than expected areas for 2012/13 does little for 2011/12 demand. With uncertainty still surrounding China and their import needs, and South American soybean and corn crops far from certain, lower prices could encourage buying interest from the major importers.
OILSEED MARKETS - Willie Wright, Oilseed Trader
- Rapeseed prices in Europe continue to be supported by the firm soya complex as global soybean production is forecast to decline to a three-year low of 243mln t. According to Hamburg-based analysts Oilworld, global oilseeds production is also expected to fall to a three-year low, resulting in a further tightening of stocks despite some demand rationing.

- Global rapeseed production is predicted to recover to approximately 67mln t from last year’s 66mln t, but there is a long way to go and a lot of weather to get through before our crops are realised.

- Rapeseed crush margins are now well below cost and processors in both the UK and on the continent have cut production substantially to the point that they have been selling their rapeseed purchases back to the market.

With rapeseed processors suffering with the worst crush margins for a decade, the medium term outlook would suggest that falling demand should result in a setback in rape values but, for the time being, the tight soy S&D and the firm soybean market continues to underpin the whole oilseeds complex.


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