With increasing concerns about new crop availability, global grain prices have continued to edge higher this week.
In the latest USDA weekly crop progress report, US winter wheat was pegged at only 30% good-excellent, the lowest at this point in the season since 1996. This was only the fourth time that ratings in week 15 of the year have been lower than 33% good-excellent in US records, which date to the late 1980s, the AHDB reports.
As a result, the Chicago wheat December 22 contract closed at $409.51/t on Monday, a rise of $7.62/t on Friday’s close.
Russian wheat exports, although limited, continued moving last week, despite sanction complications. The latest Egyptian (GASC) tender included a Russian shipment, alongside French and Bulgarian shipments. This was the first successful GASC tender since the start of the war in Ukraine, according to the AHDB.
Maize and soya
The report also supported maize contracts. US planting was pegged at 4% complete as of Sunday 17 April, behind analyst’s estimates of 5% and the five-year average of 6%. Cold, wet weather has delayed the start of planting for many.
The Argentine grains trucker strike has now been lifted, with activity now back to near normal levels. Last week’s strike, in the middle of the busy maize and soya bean harvest, saw grain transport grind to a halt.