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Wheat
Despite the ongoing US dry weather concerns, US winter wheat condition continues to gradually improve, with the percentage of the crops rated good or excellent increasing from 34% to 36% in the latest USDA report.The percentage of the crops rated fair decreased to 28%, down from 29% whereas the percentage of crops which rated poor increased from 21% to 22%. This has put significant downward pressure on Chicago grain futures.
Farm Futures reports that 45% of the US winter wheat crop has reached heading stage, up from 33% a week ago but behind the five-year average of 53%.
Closer to home, European crop conditions have improved significantly after prolonged poor spring weather. The AHDB reports that crop yield potential is now looking better in Spain, France and Italy, helping to weaken European prices.
Maize
The latest USDA Crop Progress report showed that corn has made significant progress over the past week, increasing from 39% to 62%. That virtually puts this spring’s planting pace nearly even with the five-year average of 63%. Trade analysts were expecting USDA to report corn planting at 59% complete.
Closer to home, European crop conditions have improved significantly after prolonged poor spring weather
Five states have now reached at least 80% completion, including Illinois (90%), Missouri (91%), North Carolina (92%), Tennessee (86%) and Texas (82%), Farm Futures reports.
In Brazil, Mato Grosso, the country’s largest grain-producing state is expected to harvest up to 15% less of so-called second corn because of a drought in Brazil, Reuters reports.
Soya beans
Last week, the USDA’s WASDE report estimated that global oilseed production is predicted to increase by 20.9Mt in 2018/19, to 593.7Mt.In addition to this, US and China trade talks continued to provide downward pressure on the soya bean market. Soya bean planting progress in the US has moved ahead of the five-year average of 26%, reaching 35% completion.
On the Euronext exchange (MATIF) in Paris, maize and wheat futures recorded losses over the week while oilseed rape made slight gains.
Paris maize for delivery in November lost €0.25/t over the week to finish yesterday’s trade at €170.25/t.
Oilseed rape for delivery in November recorded a gain of €4.00/t to €358.25/t.
Wheat for delivery in December recorded a marginal loss of €2.75/t over the week to finish yesterday’s trade at €174/t.
Looking across the water to the Chicago grain market (CME), maize, wheat and soya beans markets recorded losses.
2018 December futures now stand at $162.98/t and $194.74/t for maize and wheat, respectively, down $1.65 and $7.57.
Soya bean futures for November delivery recorded a loss of $0.96 to $375.67/t.
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