Week Beginning Monday 13th November 2017
Posted by Anderson Grain Marketing on Nov 20, 2017 in AGM News | 0 comments
Feed wheat for spot / Pre-Christmas collection is marginally improved this week at £142.00/T ex-farm. For those of you who are flexible on collection throughout December there may be some small opportunities for movement – please contact the office to discuss your requirements.
As for any milling varieties, most local homes appear to be well covered for movement before the end of the year and most ex-farm values which offer a significant premium are for the New Year now. For those of you looking for spot movement, any opportunities should be worth some consideration.
Feed barley continues to trade in the region of £125.00/T ex-farm although again values are slightly more for movement into December.
It was announced on Friday that Hulls Bio-ethanol plant, Vivergo Fuels, is to “bring forward a planned maintenance shutdown in response to Deteriorating market conditions and legislative uncertainty”.
The plant has planned to both “bring forward and extend” their annual maintenance period to lessen the impact of the plants profitability. Given that Yorkshire feed wheat has commanded a significant premium to feed wheat located elsewhere in the country due to high demand, we could see local ex-farm values weaken in the coming weeks.
For more information please see the statement given on their website:
This month’s World Agricultural Supply and Demand Estimates (WASDE) from the US Department of Agriculture (USDA) were released last Thursday evening (9th November), leaving most of the trade in limbo until this morning whilst the market digested the information.
- Global wheat production for the current 2017/18 trading season is this month forecast at 751.98 million tonnes – a slight increase on last month’s estimate. Global ending stocks are slightly lowered due to an increase of usage but remain record large.
- Global maize corn production for the current 2017/18 trading season is this month forecast at 1,043 million tonnes. Global maize corn stocks, at 203.9 million tonnes, are increased by 2.9 million tonnes on last month’s figure.
- Over in Australia, soaking rains brought welcome drought relief to both Southern Queensland and Northern New South Wales, slowing winter wheat maturation and initial harvesting. In contrast, drier than normal weather in South Australia likely caused some reductions in yield potential. Regardless, and despite much trade speculation, the USDA has left the Australian wheat production figure unchanged at 21.5 million tonnes this month. This is a significant decrease from the 33.5 million tonnes produced last season, but given that the trade was expected a further decline, this has done little to boost grain values.
- As for the US, wheat production is unchanged at 47.37 million tonnes. The USDA added that “during October, late crop maturation and periods of heavy rain led to significant Midwestern corn harvest delays. Some of the corn was left unharvested at the expense of more fragile soybeans, most of which were harvested by months end, although the dry weather favoured fieldwork, winter wheat and cover crops had little moisture to support emergence and establishment. Across the northern Plains, sudden cold aggravated the adverse effects of lingering drought on winter wheat. Meanwhile, dry weather dominated California and the Southwest”.
- Interestingly, EU wheat production is increased a further 0.4 million tonnes to 151.49 million tonnes and Russian wheat production is increased by a further 1 million tonnes to 83 million tonnes.
- Also, it is worth noting the South American production figures this time of year as the trade begins to turn its attention towards Southern Hemisphere production. “Conditions remained overall favourable for soybeans and first crop corn in Southern Brazil. Elsewhere, Seasonal rainfall developed over key soybean areas of central and north eastern Brazil during the latter half of October, providing timely moisture for germination and establishment. In Argentina, periodic dryness interspersed with locally heavy showers maintained overall favourable conditions for immature winter grains and emerging summer crops although some locals are reportedly struggling with excessive wetness”. This month’s maize corn production figures are unchanged for both Argentina and Brazil at 42 million tonnes and 95 million tonnes respectively.
To view the report in full, please see:
https://www.usda.gov/oce/commodity/wasde/latest.pdf