Grains Markets Weekly Review
CBOT Wheat
A 23 1/4c gain Friday saw Sep close 7c higher on the week. There seems to be some evidence that US wheat has found it's correct level for the time being around the $8/bushel mark.
CBOT Soybeans
Futures bounced late Friday but Aug still managed to close 71 1/4c lower on the week as crude fell and US weather remains largely non-threatening.
CBOT Corn
Sep corn lost 32 1/4c on the week. Reports are circulating suggesting that two Midwest ethanol plants that had been shut down due to soaring corn prices will soon re-open. However, with crude also falling, the economics of the viability of the ethanol industry are constantly changing.
LIFFE/Euronext Feed Wheat
Nov posted a loss on the week of £6.00/tonne. A favourable weather outlook should enable rapid harvest progress in the coming week. The differential between feed and milling grade is widening.
Gleadell are citing a further downside risk of another £10/tonne for feed wheat given current parities.
LIFFE/Euronext Milling Wheat
Nov milling wheat closed unchanged on the week. There seems to be a trend developing that suggests milling premiums over feed are expanding. Wet weather in France during May and June may have led to some quality losses it seems.
LIFFE/Euronext Corn
Nov corn posted a net weekly loss of EUR5.30/tonne, following the Chicago market lower.
LIFFE/Euronext Rapeseed
Rapeseed plunged in the first half of the week before recovering slightly, however Nov still lost EUR18.50/tonne on the week. The French harvest is in full swing and bits and pieces have been done in the UK. A favourable weather outlook next week could bring more harvest pressure.
The UK physical market is £20/tonne lower on the week according to Frontier.
Falling crude oil has also weighed on rapeseed this week. Sep Crude lost $6.21 on the week to close at $123.26/barrel.
A 23 1/4c gain Friday saw Sep close 7c higher on the week. There seems to be some evidence that US wheat has found it's correct level for the time being around the $8/bushel mark.
CBOT Soybeans
Futures bounced late Friday but Aug still managed to close 71 1/4c lower on the week as crude fell and US weather remains largely non-threatening.
CBOT Corn
Sep corn lost 32 1/4c on the week. Reports are circulating suggesting that two Midwest ethanol plants that had been shut down due to soaring corn prices will soon re-open. However, with crude also falling, the economics of the viability of the ethanol industry are constantly changing.
LIFFE/Euronext Feed Wheat
Nov posted a loss on the week of £6.00/tonne. A favourable weather outlook should enable rapid harvest progress in the coming week. The differential between feed and milling grade is widening.
Gleadell are citing a further downside risk of another £10/tonne for feed wheat given current parities.
LIFFE/Euronext Milling Wheat
Nov milling wheat closed unchanged on the week. There seems to be a trend developing that suggests milling premiums over feed are expanding. Wet weather in France during May and June may have led to some quality losses it seems.
LIFFE/Euronext Corn
Nov corn posted a net weekly loss of EUR5.30/tonne, following the Chicago market lower.
LIFFE/Euronext Rapeseed
Rapeseed plunged in the first half of the week before recovering slightly, however Nov still lost EUR18.50/tonne on the week. The French harvest is in full swing and bits and pieces have been done in the UK. A favourable weather outlook next week could bring more harvest pressure.
The UK physical market is £20/tonne lower on the week according to Frontier.
Falling crude oil has also weighed on rapeseed this week. Sep Crude lost $6.21 on the week to close at $123.26/barrel.
