Wheat

Wheat markets came under pressure this week. Spring planting of wheat and barley has continued to get off to a slow start, according to the latest crop progress report by the USDA. In addition to this, cold weather has continued to affect the condition of crops in key Hard Red Winter-growing states, the AHDB reports.

However, improved forecasts for rain later this week have reduced the market's prospects for further yield increases. Rainfall levels of between 30mm and 60mm are expected this weekend in key drought-stricken regions of the US.

Maize

Weather in the northern plains of the US continues to prevent paddock access to enable maize planting, Graincentral reports. The USDA crop progress report, which was published overnight, has placed 2018 maize planting at 3% compared with 6% this time last year and an average of 5%.

In Argentina, both the latest Buenos Aires Grain Exchange (BAGE) and the USDA reports show sizeable downward revisions for maize, reflecting the challenging Argentinian weather, the AHDB reports. BAGE and the USDA now forecast at 32Mt and 33Mt, respectively.

Soya beans

In the US, the prospect of a larger US soya bean area draws closer as a result of the delayed planting pace of the US corn and spring wheat area.

The USDA has also revised its forecast for Argentina's 2017/18 soya bean crop down, now flagged at 40Mt. The AHDB reports that this is a 14.9% drop from its March forecast and the smallest crop since 2008/09.

Oilseed rape

Oilworld is reporting that rapeseed yields could fall short of early predictions (www.oilworld.biz). Sub-optimal growing conditions in northern Germany and Poland, along with disease risk in western France, may result in production coming in lower than currently expected. The 2018 EU rapeseed crops is currently pegged at 22.2Mt, a three-year high.

On the Euronext exchange (MATIF) in Paris, maize, oilseed rape and wheat futures recorded marginal losses over the week.

Paris maize for delivery in November recorded a loss €1.75/t over the week to finish yesterday’s trade at €166.75/t.

Oilseed rape for delivery in November recorded quite a large loss of €5.50/t to € 347.50/t.

Wheat for delivery in December also recorded a loss of €3.00/t over the week to finish yesterday’s trade at € 171.5/t.

Across the water, the Chicago grain market (CME) recorded losses across the board.

2018 futures now stand at $382.72/t and $192.76/t for November delivered soya beans and December-delivered wheat, respectively, down $2.35 and $7.57 on last week’s significant gains.

Maize futures for December delivery were also down $2.52 to $160.47/t.

Futures continue an upward price trend

Grain markets: wheat prices surge in Chicago