International Grain, Seed and Fertiliser Merchant

Thursday 14 December 2017


Daily Grain Comments

  • US markets – soy higher as market tries to figure out Argentine weather & future Chinese demand. Corn higher as market balances large 2017 crop/slow export demand vs slow farm selling/fund short. Wheat higher on lower US$ (despite FED rate hike), dryness and short covering.
  • US Federal Reserve raised interest rates by 0.25%, the third rate rise in 2017, citing that ‘solid gains in the US economy’ made the move rationale. Officials also boosted the economic forecasts, projecting 2.5% growth in 2017 and 2018, due in part to planned tax cuts.
  • S Am weather has some rains for south/west areas of Argentina, with better coverage into the weekend and again at the end of next week. Things remain mostly dry for Southern Brazil with better rains next week. Ongoing rains continue in Northern Brazil.
  • Brazil’s association of oilseed processors Abiove, raised its projection for the country’s soybean exports in 2017 to a record 67.8mln t, as current demand from China remains strong.
  • Brazil’s senators on Tuesday passed a bill proposing sharp increases in the use of biofuels such as ethanol and bio-diesel in the country in coming years.
  • The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, reached close to its four-year high last week due to surging demand for capsize and panama vessels.
  • In its final report until crops exit dormancy, FAM rated French winter wheat as 95% good/excellent, whilst trimming the 2017 crop by 500kmt and lowering 2017-18 non-EU exports by 400kmt to 9.5mln t, citing ‘competition’ for the reduction.

Last Trade Settlement:

London May ’18 Settle £141.60/t – up £0.05/t from previous close

Paris May ’18 Settle €164.25 – down €0.50/t from previous close

CBOT Mar ’18 Corn Settle $3.4900/bushel – up 1.25 cents/bushel from previous close

CBOT Mar ’18 Wheat Settle $4.1675/bushel – up 6.00 cents/bushel from previous close

Currency Today:

GBP EUR    1.1370

GBP USD    1.3450

EUR GBP    0.8790

EUR USD    1.1825

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Company Number: 534118