Wheat

A winter storm brought rain and snow to key wheat-producing regions of the US which were experiencing severe drought over the weekend.

It is reported that the storm brought about 25mm of rain across northern, central and eastern Kansas, the biggest US wheat-growing state.

This resulted in US wheat futures falling to six-week lows. Euronext wheat futures also edged lower as a result of the US market movements. However, market losses were minor.

The recent cold spell which gripped Europe is not expected to be severe enough to harm winter wheat crops, but it could hamper spring crop sowing, Agrimoney reports .

Soya beans

Over the past week, some rain fell in the drought hit soya bean areas of Argentina. While amounts were not enough to make a difference to the health of the country’s soya bean crops, it did have an effect on US soya bean futures, adding to a week of losses for Chicago markets.

The Rosario Grain Exchange now estimates that the 2017/18 soya bean crop will only reach 40Mt, a 6.5Mt cut to its February estimate and 17Mt below last year’s record crop, the AHDB reports.

One to watch

The AHDB reports that favourable weather ahead of spring planting in Russia and Ukraine could increase the chance of another large harvest due to good levels of soil moisture.

According to UkrAgoConsult, the condition of winter crops in Ukraine is now reported to be the best in four years.

Russian farmers plan to sow spring crops on 31m hectares in 2018, down 0.4% from a year earlier. However should favourable conditions continue, Russia could potentially harvest more than 110Mt of grain in 2018/19.

Europe

On the Euronext exchange (MATIF) in Paris, wheat futures recorded marginal losses over the week while oilseed rape markets made slight gains. Maize broke its nine-week run and recorded marginal losses.

Paris maize for delivery in November fell €0.75/t over the week to finish yesterday’s trade at €168/t.

Milling wheat for delivery in December recorded a modest loss of €1.75/t since last week to finish yesterday’s trade at € 171.25/t.

Oilseed rape for delivery in November recorded a modest gain to offset last week’s losses. Paris oilseed rape prices are up €2.00/t to €348.75/t.

Chicago

Across the water, the Chicago grain market (CME) recorded losses across the board with winter wheat futures tumbling to six-week lows.

2018 futures now stand at $375.37/t and $186.44/t for November-delivered soya beans and December-delivered wheat, respectively, down $5.29 and $13.23 on last week.

Maize futures for December delivery were down $3.78 to $156.45/t.

Read more

Firmer tone to physical grain markets

Grain markets: futures back across the board