International new-crop wheat markets recorded marginal gains over the past week, supported by reports of frost across the US midwest.

Frost in the region at the end of last week created concerns for slower spring plantings and damage to winter wheat and emerging maize crops, the AHDB reported.

It also reported that the easing of lockdown across Europe is also lending support to markets.

Weather concerns

Ongoing weather concerns in the European and Black Sea areas also continue to provide a somewhat bullish sentiment for markets, but improving rainfall figures for these regions is providing some pressure.

The weekly update to French crop ratings left soft wheat and winter barley conditions unchanged at 57% and 53% “good” or “excellent” respectively.

World agricultural supply and demand estimates

However, markets will likely see pressure this week from the USDA world supply and demand estimates report due to be released on Tuesday.

The report is likely to detail the low demand for US ethanol, with an increase to maize ending stocks for old crop.

In addition, this will be the first USDA report to estimate global ending stocks for the 2020/21 season.

Industry pre-release polls by Reuters predict maize ending stocks at a 30-year high for the 2020/21 season.

China’s recent decision to purchase large volumes of US maize failed to provide significant support to grain markets.