Wheat

The much anticipated USDA WASDE crop revealed that the condition of US wheat crops had improved moderately. The proportion of “good” or “excellent” crops in Oklahoma gained one percentage point to 7%, while Texas gained three points to 13%. Just 12% of Kansas’s wheat crops were rated as good or excellent. While markets responded accordingly, these ratings are still historically weak.

Ukrainian grain crops are reported to be in very good condition with the 2018/19 wheat crop forecasted at 26.3Mt (AHDB).

Maize

The March WASDE projected US maize exports for 2017/18 to reach 56.52Mt. This is up 4.45Mt from the February projection. This has also led to a lowering of projected ending stocks, leading to a bullish view on US maize.

Soya beans

In the latest USDA forecasts, Argentinian soya bean output was cut to 47Mt, down 7Mt.

This reduction now means that global output is forecasted to be 3Mt below demand for the 2017/18 season (AHDB). This could potentially lead to increases in oilseed prices.

However, rain in key drought stricken Argentinian soya bean-growing areas last week triggered falls in global oilseed and grain markets. It remains questionable, however, if the rain has come too late to revive soya bean yields.

Europe

On the Euronext exchange (MATIF) in Paris, wheat futures recorded marginal losses over the week but it was oilseed rape markets which were the biggest losers. Maize made marginal gains.

Paris maize for delivery in November gained €0.50/t over the week to finish yesterday’s trade at €168.75 /t.

Milling wheat for delivery in December recorded a modest loss of €1.00/t since last week to finish yesterday’s trade at € 173/t.

Oilseed rape for delivery in November recorded a significant loss over the week, with Paris prices down €6.75/t to € 346.75/t.

Chicago

Across the water, the Chicago grain market (CME) recorded losses across the board. These losses, however, did not fully erode last week’s significant gains.

2018 futures now stand at $380.66/t and $199.67/t for November delivered soya beans and December delivered wheat, respectively, down $1.84 and $3.53 on last week.

Maize futures for December delivery were down $2.44 to $160.23/t.

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Weather's push on grain price continues

Grain markets: severe drought in Argentina sparks price rally