Wheat

Drought conditions in the US have once again grabbed headlines as dryness in the southern plains continues to persist. Concerns surrounding the potential impact the dry weather may have on winter wheat yields has led to slight gains in Chicago grain prices.

In addition to his, spring wheat planting continues to lag. By last week, just 10% of spring wheat had been planted, down 20 percentage points on the same time last year and down 26 percentage points on the 2013-2017 average, the AHDB reports.

Elsewhere, Canadian farmers are expected to plant 13% more wheat in 2018 than in 2017. The bulk of wheat produced in Canada is spring wheat and the area planted to spring wheat is expected to grow by 15%, the AHDB reports.

Maize

Interestingly and conversely to the dry weather experienced in southern states, cold and wet weather in the Midwest continues to delay maize planting in the US.

Soya bean

Soya bean markets have also reacted positively to the weather woes experienced in the US as soya bean planting has been delayed. Across the border in Canada, expectations for rapeseed planting were forecast to be down 7% to 8.7m ha in 2018, according to a survey from Statistics Canada

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

Paris maize for delivery in November gained €2.50/t over the week to finish yesterday’s trade at €170/t.

Oilseed rape for delivery in November recorded a marginal gain of €0.25/t to €349.25/t.

Wheat for delivery in December recorded a strong gain of €4.25/t over the week to finish yesterday’s trade at €173.5/t.

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

2018 futures now stand at $382.9/t and $201.4/t for November-delivered soya beans and December delivered wheat respectively, up $4.78 and $8.45.

Maize futures for December delivery was also up by $1.81 to $164.2/t.

International grain markets: modest gains across the board

Weather issues in the US dominate market sentiment as both cold and wet weather in the Midwest and a prolonged dry spell in the south has put winter and spring wheat yield potential and area at risk.