ao link
Filter content by area of interest
Handling Equipment/Systems
Ports & Terminals
Transport & Distribution
Materials & Commodities
Storage
Processing
ICT & Telecoms
Civil Engineering
Mining
Environment
Safety & Security
Business
 View all Topics View all Topics A-Z
More View all Topics View all Topics A-Z

You are viewing this article with our compliments. 


register  or  login  to manage your newsletter preferences and to prevent this message from appearing.

Grain traders eyeing weather conditions

Corn remains the driver for the global wheat market and the past week has been dominated by weather concerns, mainly in Brazil where continued dryness is affecting the country’s second corn crop.

Linked InTwitterFacebookeCard

According to ADM Agriculture’s latest market report, crop estimates are rapidly declining and, with no rain expected for Brazil over the coming weeks, the impact of the smaller crop is seen pushing export demand back to US corn.

 

“This would severely tighten the US balance sheet, especially with continued export demand seen from China, supporting higher corn prices and dragging global wheat values upwards,” said Jonathan Lane, ADM Agriculture’s head of grain trading.

 

“Although wheat crops in parts of the southern and northern plains of the US have received rains, the forecast of drier conditions has added support, along with the extremely dry and cooler conditions in Canada.

 

“US wheat prices are completely uncompetitive on the export market, but at present it’s all about corn and Brazil. EU (Baltic) and Black Sea prices remain the cheapest wheat in the world, and at between US$35-US$50/t discount to US wheat there is little reason for them to go lower.”

 

“EU and UK old prices have remained steady, with UK new crop prices down £2 on the week, despite the Chicago-based rally. Recent rain for crops have been welcomed, although more is needed, along with some sunshine and warmth to enhance yield potential.

 

“New crop prices remain attractive for growers, in the £180-£190/t price range ex-farm for early in the new crop marketing season, but that does not mean markets cannot retest the recent highs,” concluded Lane.

Linked InTwitterFacebookeCard

You may also like these related articles...

‘Rain makes grain’ carries weight in current market

Veracruz agri-bulk terminal kitted out

Second rice shipment from Uruguay to Iraq

Oslo halts test shipping of woodchips from Ormsund

Bagged rice loading operation in Montevideo

Grain trading high on weather-related rally

Linked In
Twitter