Review of the week
CBOT CORN
CBOT corn closed with Sepember 18 1/4c lower on the week. There is still some uncertainty about the overall impact on yields for this late planted crop. Still the IGC Friday increased it's global production estimate to 774mmt from 759mmt a month earlier.
Sharply lower wheat prices also weighed on corn.
CBOT SOYBEANS
CBOT soybeans had a quiet week, fluctuating this way and that before closing with a net gain of 11c overall for the Sept future. Uncertainty over the impact of Hurricane Gustav and the Russian/West conflict is supportive for crude oil which is in turn helping soybeans at the moment.
Ideas that Chinese demand which has waned badly this last month will increase due to a public holiday there next month has also added some modest support.
CBOT WHEAT
CBOT wheat suffered it's biggest weekly drop in five months, closing lower every session this week for September to finish with a loss of 86 1/4c on the week. The IGC upped it's global production estimate 10mmt from last month to 672mmt.
The only areas of concern for wheat recently have been Argentina and Australia, both have seen or are expected to get significant rains this week/weekend.
LONDON FEED WHEAT
November wheat lost GBP5.50 on the week, and is now GBP32/tonne lower since the beginning of July.
With a UK wheat crop of around 17mmt expected (up 24% from 13.7mmt in 2007), giving us a 4mmt exportable surplus of largely feed grade wheat due to adverse weather conditions in July and August its not surprising that wheat is under pressure.
The Ukraine are reckoned to have a crop in the region of 27mmt (almost double 2007's 13mmt) and 89% of it is said to be feed wheat (down from 60% in 2007).
In June/July Ukraine exported almost 1mmt wheat, just over 1mmt of barley and over 1.5mmt of corn.
PARIS MILLING WHEAT
November Paris milling wheat closed the week with a loss of EUR8.80/tonne as virtually every country around the world is reporting larger wheat crops than earlier anticipated.
PARIS RAPESEED
The November contract finished the week EUR6.50 lower as the European harvest draws to a close. The EU is reckoned to have a crop of around 19mmt and the Ukraine one of almost 3mmt. Canada will be the next big producer to start cutting and they are reckoned to have the potential for a record crop too, well in excess of 10mmt compared 8.8mmt in 2007.
PARIS CORN
Nov corn closed EUR3 lower on the week as the wheat market declined.
CRUDE OIL
October crude closed the week just 87c firmer despite the threat to US supplies from Hurricane Gustav and the threat of Russia pulling the plug on gas supplies to Europe.
CBOT corn closed with Sepember 18 1/4c lower on the week. There is still some uncertainty about the overall impact on yields for this late planted crop. Still the IGC Friday increased it's global production estimate to 774mmt from 759mmt a month earlier.
Sharply lower wheat prices also weighed on corn.
CBOT SOYBEANS
CBOT soybeans had a quiet week, fluctuating this way and that before closing with a net gain of 11c overall for the Sept future. Uncertainty over the impact of Hurricane Gustav and the Russian/West conflict is supportive for crude oil which is in turn helping soybeans at the moment.
Ideas that Chinese demand which has waned badly this last month will increase due to a public holiday there next month has also added some modest support.
CBOT WHEAT
CBOT wheat suffered it's biggest weekly drop in five months, closing lower every session this week for September to finish with a loss of 86 1/4c on the week. The IGC upped it's global production estimate 10mmt from last month to 672mmt.
The only areas of concern for wheat recently have been Argentina and Australia, both have seen or are expected to get significant rains this week/weekend.
LONDON FEED WHEAT
November wheat lost GBP5.50 on the week, and is now GBP32/tonne lower since the beginning of July.
With a UK wheat crop of around 17mmt expected (up 24% from 13.7mmt in 2007), giving us a 4mmt exportable surplus of largely feed grade wheat due to adverse weather conditions in July and August its not surprising that wheat is under pressure.
The Ukraine are reckoned to have a crop in the region of 27mmt (almost double 2007's 13mmt) and 89% of it is said to be feed wheat (down from 60% in 2007).
In June/July Ukraine exported almost 1mmt wheat, just over 1mmt of barley and over 1.5mmt of corn.
PARIS MILLING WHEAT
November Paris milling wheat closed the week with a loss of EUR8.80/tonne as virtually every country around the world is reporting larger wheat crops than earlier anticipated.
PARIS RAPESEED
The November contract finished the week EUR6.50 lower as the European harvest draws to a close. The EU is reckoned to have a crop of around 19mmt and the Ukraine one of almost 3mmt. Canada will be the next big producer to start cutting and they are reckoned to have the potential for a record crop too, well in excess of 10mmt compared 8.8mmt in 2007.
PARIS CORN
Nov corn closed EUR3 lower on the week as the wheat market declined.
CRUDE OIL
October crude closed the week just 87c firmer despite the threat to US supplies from Hurricane Gustav and the threat of Russia pulling the plug on gas supplies to Europe.
