- US markets – soy lower, corn marginally higher and wheat marginally lower. Commodity news remains extremely light heading into the festive period with SAm weather being the major driver for soy prices.
- US Midwest will enjoy a few more days of above normal temperatures this week, with a winter storm system bearing down on the plains/Rocky Mountains region, which will sweep across the US later this week, shifting temperatures to much below normal all next week.
- US 11-16 day forecast has a much colder outlook for most of the US with the exception of the SW region. Precipitation will be above normal in the southern regions, with normal to below normal for the East Coast, Midwest, Plains and Northwest.
- A large proportion of Kansas, Oklahoma and northern Texas have received little if any precipitation over the last 60 days, with the forecast showing temperatures well below normal for the region. Light snow may fall this weekend, but potential winterkill still exists.
- Rains that fell on Argentina’s main farm belt over the weekend brought relief to parched soy and corn growing land, allowing the planting of crops to resume in most of the affected areas.
- Soybean harvest in Mato Grosso (Brazil) may be as much as four weeks later than last year after dry weather delayed planting. Farmers may plant more sorghum, sunflower and cotton after soy, because low corn prices have reduced interest in planting a second corn crop.
- China’s NE province of Heilongjiang, the nation’s top corn producer, has cut acreage of the grain by almost 1mln ha this year, in an effort to reduce the mammoth state inventories of the grain from stockpiling efforts that ended last year.
- Romania’s estimate for 2017-18 wheat exports were raised 3% to 5mln t vs 4.85mln t previously, according to UkrAgroConsult. This is still lower than last year’s 6.7mln t due to reduced shipments to Vietnam and Egypt .
- Warm weather leaves EU grain crops fragile to cold spells according to the EU’s crop monitor unit MARS, although the absence of damaging low temperatures has limited frost kill on grain crops so far this season.
Last Trade Settlement:
London May ’18 Settle £141.55/t – down £0.60/t from previous close
Paris May ’18 Settle €164.75 – unchanged from previous close
CBOT Mar ’18 Corn Settle $3.4750/bushel – up 0.50 cents/bushel from previous close
CBOT Mar ’18 Wheat Settle $4.1950/bushel – down 1.00 cents/bushel from previous close
GBP EUR 1.1320
GBP USD 1.3410
EUR GBP 0.8835
EUR USD 1.1850