Auto Trader Ltd
Farminguk
29 July 2016 | Online since 2003
Scrutton Bland


23 November 2012 09:04:37|

Strategie Grains lowers European wheat estimates


Jonathan Lane, Gleadell’s trading manager, comments on markets...
Wheat
Markets are virtually unchanged from last week - fundamental long-term support is still intact due to further potential crop reductions in the Southern hemisphere and declining new crop US wheat ratings. US winter wheat crop ratings fell another 2 points to 34% good/excellent, mainly as a result of the dry weather that has affected much of the Midwest, and compared with a rating of 50% this time last year.
European markets again drew support from a further decline in the wheat crop forecast, as Strategie Grains lowered their estimate to 122.7mln t, down from 123mln t last month. The lower crop will again leave traders projecting a bullish export outlook with limited competition from weather-affected rivals.
In the UK, it appears that the Vivergo plant in Hull is ‘up and running’ with purchases of wheat for next week delivery being made. Initially, they are buying wheat down to min 68kg/hl. Although many had included this facility in their supply & demand estimates for this season, the reality of the commissioning dims another ray of hope to the UK market ‘bears’.
Oilseeds
The early part of the week has seen soybeans find some support, with market volatility easing and a small range developing. Volumes have been light with traders reducing risk ahead of the US Thanksgiving holiday on Thursday where US markets are closed. The soybean fundamental outlook remains one of tight supplies and strong demand, but we have a large South American crop looming for early next year and there are reports that better weather is aiding these plantings.
Domestically, the UK market remains quiet with ex farm rapeseed worth around £365/tonne. There is a similar story in continental Europe with little coming forward from farm as the market remains below target selling levels for farmers. In Germany, which along with France are the EU’s biggest producers, favourable weather has led to an estimated 100,000 Ha increase in plantings.
Over the past week global markets have been influenced by macro-economic factors including the Israeli–Palestine conflict, the seemingly never ending Greek debt saga and uncertainty regarding the US budget and tax policies known as the ‘fiscal cliff’. All these factors have added a cautious tone to global markets.

Download

0 Comment

loginuserlogo
Name

Please enter your name


Email

Please enter your email

Please enter valid email


Comment

Please enter your comment


Post Comment

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


Comments

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


New Zealand | 29 July 2016
Robbery at the Kensington Avenue dairy - Waihi

At 12.50pm today, Thursday 28 July, a man entered the Kensington Avenue dairy in Waihi armed with what appeared to be a pistol. He is described as Maori or Polynesian of solid build who was wearing a ...


France | 29 July 2016
French plans for origin labelling slammed by dairy and meat processors

France is to trial mandatory country of origin labelling for two years. Dairy and meat processors have heavily criticised plans to introduce origin labelling in France. EU Health Commissioner Vy...


Canada | 29 July 2016
Canadians given go-ahead to buy another dairy farm

Canadians are continuing to buy into New Zealand dairy farming with the purchase of a property in the Maniototo, Otago. Last year a report by KPMG showed Canadian investors were the biggest foreign...


Uganda | 29 July 2016
Will tax cuts on agriculture machinery spur sector?

To encourage more people to get into agribusiness, government in the financial year that started on July 1st decided to strike down 18% Value Added Tax (VAT) on the supply of machinery used for the pr...


USA | 29 July 2016
Scientists call for increased federal investment in sustainable agriculture

Based on a new analysis of federal funding from the US Department of Agriculture, researchers say there is an urgent need for increased investment in research and development aimed at making sustainab...



Trending Now

Viewed
Discussed


Top stories you may have missed
closeicon
Username
Password