Have a great weekend. This will be our last daily news until Tuesday 18th April due to the Easter weekend. 

Cereals

  • May-17 UK LIFFE Feed wheat traded at a near 1-month high of £149.50/T on ideas of tight stocks at the end of the marketing season whilst winter crops are in need of a drink across Western Europe.
  • Strategie Grains has increased its 2016/17 EU wheat export target to 23.5MlnT as a result of higher imports from Turkey who have stopped importing Russian origin wheat. They expect the EU to export 26.2MlnT in the  2017/18 season.
  • Weekly US export sales were good once again this week at 422KT whilst slightly below expectations for corn at 738KT.
  • US grains found support this morning as the US Dollar depreciated following comments from President Trump suggesting that the US currency was too strong.
  • US rainfall will be beneficial to winter wheat in the US following a prolonged dry period which raised concerns for the lowest planted area in over a century. Heavy rainfall could also delay spring plantings across the US Midwest.
  • According to the US Climate Prediction Center, there are increasing chances of seeing El Niño emerging in late summer or fall even if the latest long-term forecast continues to indicate a 50/50 chance [See chart of the day#1].

May-17 LIFFE Feed wheat options contract expired today.

Oilseeds

  • As Sterling recovers UK rapeseed prices have been unable to benefit from a bounce in EU prices.
  • Soybeans traded higher during Thursday’s session over harvest delays in Argentina and concern over wet conditions impacting plantings in the US.
  • According to preliminary customs data, China – the world’s largest importer of soybean – imported more than 6.6MlnT of soy in March, the third consecutive monthly record. So far in 2017, China has already imported more than 19.8MlnT i.e. +3.56MlnT yoy (+21.9%) or more than 3 times the volume imported 10 years ago [See Chart of the day].
  • According to the Malaysian Palm Oil Board [MPOB], Malaysia will cut its crude palm oil export tax to 7% in May from 7.5% in April & 8% in March whilst production continues to recover.

May-17 Euronext Rapeseed options contract expired today.

Chart of the Day#1: CPC/IRI Official Probabilistic ENSO Forecast

Chart of the Day#2: China Soy Imports

Futures & Options prices