Week Beginning Monday 21st May 2018
Posted by Anderson Grain Marketing on Nov 6, 2018 in AGM News | 0 comments
This morning old crop feed wheat is valued at £161.00/T ex-farm. Old crop milling wheat is still trading at £170.00/T ex-farm following another firm week, if you would like to discuss your movement please speak with the office. Old crop feed barley is just making £150.00/T ex-farm, as for new crop barley £135.00/T is still being offered for harvest.
New crop feed wheat is slightly forward at £150.00/T ex-farm for the second half of August.
The ongoing trade war between the US and China has temporarily been put on hold while a deal is negotiated. With the threat of a 25% tariff on soybean, China looked for soybeans elsewhere. This put strain of US and Brazil soybean prices and led to a devaluation of the Brazilian currency and the US dollar. The recent pressure on soybean prices as resulted in a halt in the downwards trend for the European rapeseed market. The rise in crude oil prices and the global affairs between US and China has started to have a long overdue impact on the European rapeseed market.
Last week’s USDA report showed US planting had made vital progress. However, the maize planting is still behind 2017’s planting PACE but has increased 23% from the previous week. Last week also ended with 35% of soybean crop in the ground and with 58% of spring wheat crop planted and if cropping conditions stay positive this could increase further.
Elsewhere in France, predictions for maize crop planting look flat and below levels recorded from previous years according to the French Farm Ministry. Recent global grain harvests and the recent devaluation of the euro against the US dollar are likely to be a contributor to the recent decline in maize prices, with Paris maize futures closing at E165.50/T (down E6.75/T).
Meanwhile, European estimated planting areas highlighted a 2% decline for UK wheat area and a slight decline for Germany, France, Poland and Romania. UK wheat prices look to be supported by EU grain this season; with EU planting areas projected down and UK wheat supplies already tight, a strong domestic demand for EU grain is expected.