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A mixed seven days on international grain futures markets saw European wheat futures record a slight decrease, despite the bullish news of continued dry conditions and concerns over European wheat production. Meanwhile, Chicago soya beans continued their decline as the latest WASDE report and continued trade tensions depressed prices.
Elsewhere, looking to the Swedish harvest, Lantmännen forecasts a total of 4.2m tonnes for the 2018 harvest. This is the lowest figure since 1992. Harvest yields are over 30% below the five-year average. The poor harvest performance is in part due to fewer hectares of winter crops being sown last year and reduced yields following the extreme heat and drought in May and June.
Wheat
In the latest World Agriculture Supply and Demand Estimates (WASDE), the USDA has cut its estimate of global wheat ending stocks, down 5.3Mt to 260.9Mt
Maize
Maize futures came under pressure over the week due to the latest USDA Crop Progress report increasing the proportion of the US maize crop to excellent condition by eight percentage points. The latest WASDE report also contributed to the fall by raising the 2018/2019 US production forecast to 361.46Mt. This is up 4.83Mt from the June estimate.
Oilseed
There was some scope for positive movements in oilseed markets as the French government is now estimating the 2018/19 winter rapeseed production at 4.6Mt, a 0.3Mt reduction from its June forecast. Output is now down 15% from 2017, the AHDB report.
Elsewhere, the Association of German Farm Cooperatives cut its estimate for the German rapeseed to 3.55Mt, a 0.50Mt reduction from June. This reduction in rapeseed production would represent a 16.8% decrease from 2017.
On the Euronext exchange (MATIF) in Paris, maize futures recorded a marginal gain while oilseed rape and wheat were back slightly.
Milling wheat for delivery in December recorded a €1.0/t decrease since last week to finish yesterday’s trade at €186.5/t.
Oilseed rape prices were also down slightly on last week. Rapeseed prices from Paris were down €1.0/t since last week to €364.0/t.
November 2017 maize prices recorded a €1.8/t increase over the previous week to finish at €186.5/t by close of business on Monday.
Looking across the water to the Chicago grain market (CME), wheat, maize recorded minor losses however soya bean markets made recorded significant losses.
2018 December futures now stand at $141.2/t for maize, down $1.9/t and $ 308.3/t for November delivered soya beans respectively, down $14.8/t.
Wheat futures have also decreased with prices for December delivered crop down $1.50/t to $186.
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