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Wheat
US weather continues to dominate the direction of wheat markets. The proportion of US winter wheat crops rated as poor or very poor has increased in several key growing states. For example, in the largest US wheat planting state, Kansas, crops rated poor or very poor doubled to 44% from December to January. However, forecasts show that rain and snow are predicted to arrive which may help to elevate these concerns.
Maize
Dry weather has slowed the rate of maize planting in Argentina over the past week. Currently, 5m hectares of the planned 5.6m hectares are planted but the continued drought across South America could lead to this target not being realised.
Soya beans
Weather has reasserted itself as a major driver of protein markets this week. The early harvest of soya beans in Brazil has benefited from the dry weather in the past few weeks but the recent rainfall are likely to slow harvest progress.
Meanwhile, forecasts of rainfall in Argentina have helped to ease some concerns over drought affecting this season’s soya bean crop. The lack of rain in recent months has reduced the acreage in the ground and has curbed yield expectations. It remains to be seen, however, if the predicted rain will be enough to fully address soil moisture issues.
Barley
Barley has recently overtaken wheat and maize as the most expensive cereal. Supplies in the EU have been tight due to the knock-on effects of larger Chinese barley imports and a recent one million-tonne purchase by Saudi Arabia.
Europe
On the Euronext exchange (MATIF) in Paris, wheat and oilseed prices were all down over the last week.
Milling wheat for delivery in December recorded a €3/t decrease since last week to finish yesterday’s trade at €168.75/t.
November 2017 maize prices remained static at €165.25/t by close of business on Monday. Oilseed prices have decreased slightly. Rapeseed prices from Paris are down €2/t since last week to €348/t.
Chicago
Looking across the water to the Chicago grain market (CME), maize, wheat and soya bean markets have recorded losses since last week but not quite as dramatic as those witnessed on the Dow Jones.
2018 December futures now stand at $153.30/t and $183.71/t for maize and wheat, respectively. Soya bean futures have also recorded losses with November futures down to $367.10/t.
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