05 March 2015 | Online since 2003



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



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


19 February 2015
Site Operative
An opportunity has arisen to join the team, based at Diss. The successful candidate will be responsible for assisting in the ...

1 March 2015
Kitchen Manager
Valley Farm is situated on one of Europe's largest trading estates, Team Valley, with superb public transport links....

25 February 2015
Supervisor
Duties to include, supervise operations and the day to day running of the kennels and cattery, due to rural location transpor...

20 February 2015
Energy Lawyer
Experience in alternative energy sector (in particular wind farm projects) would be a real plus. Axiom is looking to hire out...

3 March 2015
Class 1 HGV Drivers
Openfield Agriculture Ltd Class 1 HGV Drivers Openfield is one of the country's largest grain businesses handling in excess o...




Top stories you may have missed
2 February 2015 | Arable
Is EU membership damaging UK farming?

Is EU membership damaging UK farming?

Membership of the EU is damaging the British farming industry, according to...


29 January 2015 | Machinery and Equipment
Drones 'rapidly changing' agriculture

Drones 'rapidly changing' agriculture

BASIS has launched an accreditation for pilots of Unmanned Aerial Systems (...


23 January 2015 | Arable
UK wheat yields have potential to double

UK wheat yields have potential to double

UK wheat yields have theoretical potential to more than double over the nex...


23 January 2015 | Machinery and Equipment
Crowds flock to LAMMA 2015

Crowds flock to LAMMA 2015

Britain’s farmers flocked to Peterborough for the first day of LAMMA’15 to ...


22 January 2015 | Cattle
Don't blame supermarkets for milk crisis...

Don't blame supermarkets for milk crisis...

The crisis in the dairy industry is not the fault of supermarkets, accordin...


16 January 2015 | CLA
Families affected by HS2 face 'major wor...

Families affected by HS2 face 'major wor...

Transport Minister Baroness Kramer visited three rural businesses in Cheshi...


16 January 2015 | Machinery and Equipment
John Deere unveil new 6R tractor range

John Deere unveil new 6R tractor range

Spearheading the John Deere range of mid-size tractors from Mannheim, the n...


14 January 2015 | Animal Health
Monthly TB checks more effective than ba...

Monthly TB checks more effective than ba...

Regular testing for bovine TB could significantly reduce the number of infe...


12 January 2015 | News
Government regulations hampering UK agri...

Government regulations hampering UK agri...

Single-issue policy-making threatens to hamper, not help, the progress of U...


8 January 2015 | Cattle
2015: The year ahead for the beef market

2015: The year ahead for the beef market

2014 has been a “rocky old year” for the beef industry but better prices ar...