News Snippets

Another aggressive marketing campaign under their belts sees Ukraine's grain stocks as at June 1st standing at 6 MMT, according to the local statistics office. That's a 28% decline on year ago levels. Wheat reserves accounted for 3.1 MMT of that, with barley 1.1 MMT and corn 1.0 MMT.

Kazakhstan meanwhile had grain reserves of almost 9 MMT on hand at June 1st, over 8 MMT of which was wheat.

Japan are shopping for 126,500 MT of wheat in their regular weekly tender due to be concluded on Thursday, of which 91,000 MT will be US origin.

The ongoing oil spill saga in the Gulf might lead US regulators to push through an increase on the maximum permitted levels of ethanol in gasoline from the existing 10% ceiling. The environmental disaster also lends weight to the proposal to reintroduce the biodiesel blenders tax credit in the US, both would be supportive for the grains sector.

The Baltic Dry Freight Index slumped heavily yesterday to close at 3115 points, its lowest in seven weeks, on weak demand.

CBOT oats, which rose the exchange imposed maximum 20 cent limit yesterday, currently see front month July up a further 15 cents in overnight trade. The US imports more than half the oats it consumes, mostly from Canada where production is seen sharply lower this year.