International Grain, Seed and Fertiliser Merchant

Market Report

Thursday 25 May 2017

Feed Wheat

US farmers continue to show great aptitude in getting their spring crop planted, following weeks of speculation over planting delays. The fact drilling has advanced swiftly has allowed the funds to hold, and in some cases further extend, their already sizable short positions. This, together with record global stocks, continues to provide resistance to any potential market rally.  US winter wheat crop ratings improved slightly on the week, although early harvest results in the deep south have shown disappointing yields in very early crops.

EU wheat is trading slightly higher on the week despite the recent drop in the US$ to an eight-month low.  Egypt’s recent purchase of US wheat was described as a stop-gap measure and to ensure supply security until more favoured, and cheaper, Black Sea wheat becomes readily available.  Despite recent rains in parts of the EU, dryness concerns are still apparent in Spain, the eastern EU and Black Sea region, where spring plantings are progressing well.

UK new crop levels are slightly firmer on the week, supported by a weaker currency.  Renewed strength in the euro following the French elections, together with a move in the opinion polls cutting the UK government’s lead, has seen sterling retrace from recent highs.  The old crop market has started to show signs of easing, as a sharp fall in July futures, along with an increase of late season sellers (mainly based on imported wheat), has dragged physical prices lower.

In summary, while US spring planting concerns have abated, global weather issues remain.  Traders remain wary as crops are far from made, and with the knowledge that funds hold large short positions in most commodities, this leaves markets vulnerable to bouts of short covering.

Malting Barley

Laureate, the new dual-purpose spring variety, received full IBD approval yesterday for both the brewing and distilling market, and looks set to be a strong contender to the current most popular distilling variety, Concerto.  Other new varieties, including Craft and Chanson, have progressed through the provisional approval stages, it was announced yesterday.  Craft, the new winter brewing variety, has moved up from the P1 to P2 stage, and Chanson, a new spring brewing variety which benefits from the Null-Lox trait, has made it onto the first stage of provisional approval.  New varieties take time to become fully accepted and growers are advised to only grow them on contract, certainly in the first year.

The new crop market in the UK remains quiet while progress is in the hands of the weather for the next couple of months.  The heavy rain last week brought relief to crops, however areas of light land were showing heavy signs of stress pre-rainfall, and now require a top-up of moisture if conditions are to remain positive.  There have not been any new concerns from spring barley producers elsewhere in the EU and, for the coming harvest, the EU is still forecast to produce a barley crop of 60 mln t.

Rapeseed

European rapeseed futures prices have continued to slide this week, following the US soy complex lower.  Globally, the world has record stocks of soybeans, with Brazil and Argentina enjoying bumper yields and better-than-expected crops.  Despite the wet weather, planting progress in the US is keeping up with five-year averages, so the market is struggling to find any reason to move higher.

Australian rapeseed continues to arrive in Europe, and it now looks like we will see imported cargoes being discharged at the same time as European farmers are harvesting their crop.  This, combined with a higher availability of new-crop Black Sea rapeseed, is keeping a bearish slant to the market.

In the UK, politics, and the subsequent effect on currency, has really dominated prices in our domestic market, with a fall in sterling helping to cushion the losses seen in the euro-based Matif rapeseed futures.  However, any recovery in the pound will undermine values, and with the bearish new crop supply picture for global oilseeds, it looks likely that prices will come under pressure the closer we get to harvest.

Pulses

Old crop beans remain firm, and this rally looks set to continue for the remainder of the season with very few parcels left on farm and little to no carry out expected.  New crop beans continue to follow the London wheat market, with beans valued on the farm at a circa £15/t premium.  However, trade is lacklustre, with few farmers selling forward and little buying interest from the UK feed compounder.  Beans remain expensive against other mid-range proteins and feed prices may come under pressure as and when the UK farmer decides to sell.

Seed

Soft group 4 variety LG Sundance has already been of interest to growers due to a number of factors.  Sundance has an excellent disease package including excellent resistance to yellow rust, the highest rating for Septoria resistance at 7.3 and OWBM resistance.  It also demonstrates good consistency of yield and high yield potential in both fungicide and untreated trials, as well as performing excellently in the second wheat slot.  LG Sundance is one of the varieties we expect to sell out this season, so we would urge growers to cover their requirements early.

Windozz, from breeder RAGT, has remained the joint top-yielding hybrid OSR on the 2017-18 RL and has proven to be very consistent on farm with only a 2% variance in yield over the past three years in trials.  Windozz has very good autumn vigour, is early to flower, and early to mature.

Aquila is a slightly later-maturing variety, making it a good partner to Windozz.  Aquila is a new addition to the East/West RL this year from breeder Limagrain.  As well as a very high yield, it has excellent disease resistances, including an 8 for stem canker, high phoma resistance and solid light leaf spot score.  Aquila’s oil content is very high at 45.7 and it boasts very good pod shatter resistance.

DK Exalte is another new variety from Dekalb.  It features excellent gross output potential backed up with a superb disease portfolio.  DK Exalte features all the traits we have come to expect from a Dekalb variety, including pod-shatter resistance, double phoma resistance and rapid spring development. Due to its rapid autumn growth habit it is suitable for drilling up to mid-September.

Sparrow is a candidate variety that comes from DSV, breeder of the farmer-favourite variety Incentive.  Sparrow has high gross output potential through a combination of high seed yield and excellent oil content.  Very good light leaf spot resistance and solid phoma scores make this variety suitable for the whole of the UK.

All of the above varieties are featured in Gleadell’s new 2017-18 seed varieties information booklet, a useful desktop guide for growers, and offers practical advice on the best varieties available in each market sector.  To view a copy online click on the link below, or to request a hard copy, please contact your Gleadell farm trader.

http://www.gleadell.co.uk/uploads/gleadell-brochure-2017-web.pdf

We have been made aware by AIC that there could be the potential of some unacceptability of milling wheat grown using a certain biostimulant product. It is worth checking with your product supplier with regard to end-user acceptability prior to use.

Fertiliser

Alzon neo-N

In partnership with German producer SKW Piesteritz, Gleadell Agriculture are launching the world’s first integrated nitrification inhibitor/urease inhibitor to the UK market.

This innovative product provides security whatever the weather with higher N-efficiency and allows flexibility around applications.

Using this product reduces the risk of ammonia losses almost completely, reduces Nitrous oxide emissions by more than 50%, and can reduce leaching via the root area by up to 50%.  The average granulometry is 3.5mm and having a bulk density of 800kg/m3 suits those farmers moving onto wider tramlines.

Manufacturing starts in August 2017 and Alzon neo-N will be available to the UK farmer from November, so contact Gleadell Agriculture today for details.

Granular Urea

This week has seen the continued firming of markets as traders continue to step in and buy product.

There has now been 250,000t of Egyptian urea sold for June with values now $20/t off the lows seen a fortnight ago.

India has announced its next tender due on the 29th May for shipment through until early July.

In the UK, offers are firming in line with global markets and Gleadell has September-January terms to offer at attractive levels.

Ammonium Nitrate

After an exceptionally busy first week, CF has now filled both August and September delivery slots.  It is expected June/July will close shortly.

With a firm European market and urea prices rising from the lows seen a fortnight ago, CF reacted late last week firming Nitram values by £8/t from the early offer.  Even so, importers are still struggling to compete with CF pricing, and there appears to be limited offers for imported AN only at a small discount to CF.

History shows that purchasing ammonium nitrate early saves the buyer 17% on average, so taking advantage of these terms for some, if not all your N and NS requirements, makes sense.

£/€ £/$ €/$
1.155 1.296 1.1215
Feed Barley £ Feed Wheat £ Beans £ Oilseed Rape £
Jun17 113.00-123.00 140.00-150.00 179.00 324.00-329.00
Nov17 112.00-122.00 130.00-140.00 160.00 302.00-307.00
NB: Prices listed may vary depending on area.

NB: Prices quoted are indicative only at the time of going to press and subject to location and quality.

“Although Gleadell take steps to ensure the validity of all information contained within the Gleadell Market Report , it makes no warranty as to the accuracy or completeness of such information. Gleadell will have no liability or responsibility for the information or any action or failure to act based upon such information.”

Gleadell Agriculture cannot accept liability arising from errors or omissions in this publication.

Gleadell trade under AIC contracts which incorporate the arbitration clause.

Terms and Conditions of Purchase.

On every occasion, without exception, grain and pulses will be bought by incorporating by reference the terms & conditions of the AIC No.1 Grain and Peas or Beans contract applicable on the date of the transaction. Also, we will always, and without exception, buy oilseed rape and linseed by incorporating by reference the terms & conditions of the respective terms of the FOSFA 26A and the FOSFA 9A contracts applicable on the date of the transaction. It is a condition of all such transactions that the seller is deemed to know, accept and understand the terms and conditions of each of the above contracts.

Latest Tweets

Follow Us

Get updates

Registered Office:
Lindsey House, Hemswell Cliff,
Gainsborough, Lincolnshire DN21 5TH.

Company Number: 534118