International Grain, Seed and Fertiliser Merchant

Thursday 1 March 2018


Daily Grain Comments

  • US markets close –soy higher on Argentine concerns & strength of soymeal. Corn higher as market pushed above 200dma which sparked spec buying from trend followers. Wheat higher as continued focus of dry US weather triggered fund short covering.
  • Argentine weather forecast has hit and miss light rains for this week and the weekend, with the 6-10 days forecast calls for below average rainfall. Temperatures look to run average to above average with potential for hotter temperatures in the extended outlook.
  • Brazilian weather forecast has light to moderate rains seen falling in most of Brazil over a 6-10 day period with temperatures seen near average.
  • Soy harvesting and planting of the main corn crop in Parana, Brazil’s second largest grain-producing state, sharply increased last week. Soy harvest reached 27% of the planted area, while planting of the ‘safrinha’ crop jumped to 42% of the expected area.
  • US weather have some light rains for the eastern third of KA, OK and TX this week, while the 6-10 day outlook looks quiet for the plains. Temperatures seen close to average  in the plains over the 6-10 day period.
  • Mexican corn producers called on their Government to limit imports of the grain in the NAFTA re-negotiations, as their president commented that the 2.7mln corn producers in the country had the capacity to supply enough produce for local companies.
  • China has lifted a ban on imports of wheat from two more regions in Russia – purchased 17,966t from Russia in 2017, accounting for just 0.4% of its total imports according to customs data.
  • Russia has just harvested its largest grain crop in nearly 40 years, according to a report released by the USDA attaché  – exceeding 134mln t according to official reports, including 85.5mln wheat, 20.5mln t barley, 12mln t of corn and 18.5mln t of other grains.
  • Ukraine has exported about 27.5mln t of grain so far this season, down from about 29.8mln t in the same period last year – exports include 13.2mln t of wheat, 4.0mln t of barley and about 9.7mln t of maize.
  • South Africa will likely harvest 27% less maize in 2018 compared with the record harvest last season on the back of dry conditions in the maize belt. The government’s CEC projected the crop in its initial forecast at 12.22mln tm, down from 16.82mln t last season.
  • The EU Commission cut its forecast of 2017-18 EU soft wheat exports to 24mln t, from 25.5mln t, raising end-season stocks to 14.3mln t, from 12.7mln t.  In its initial forecast for 2018-19, it projects the soft wheat crop at 140mln t, down from 141.6mln in 2017-18.

Last Trade Settlement:

London May ’18 Settle £142.00/t – up £2.00/tonne from previous close

Paris May ’18 Settle €168.25 – up €2.75/tonne from previous close

CBOT Mar ’18 Corn Settle  – $3.7450/bushel – up 4.00 cents/bushel from previous close

CBOT Mar ’18 Wheat Settle – $4.8450/bushel – up 21.25 cents/bushel from previous close

Currency Today:

GBP EUR    1.1270

GBP USD    1.3740

EUR GBP    0.8870

EUR USD    1.2185

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Lindsey House, Hemswell Cliff,
Gainsborough, Lincolnshire DN21 5TH.

Company Number: 534118