Cereals

  • UK LIFFE wheat futures prices edged lower today in thin trading volume as the pound gained ground against the euro and despite tighter than anticipated stocks according to DEFRA.
  • May-17 Euronext wheat reached its highest since the end of July 2016 at the open on ideas of further exports but it formed a doji which technically means a correction towards the 175€ level could be seen.
  • After attempting to hit the c$460/bu mark following yesterday’s 3.1% rally, May-17 CBOT wheat turned lower. A steeper correction was noted on Kansas and Minneapolis wheat despite persistent dryness across the key producing states of the US Plains [See Chart of the Day #1].
  • Informa raised its 2016/17 Brazilian corn production to 91MlnT vs 89MlnT previously. If realised, it would be a new record and a massive increase of 24MlnT vs LY. The 2016/17 Argentine corn production was left unchanged at 35.2MlnT vs 36.5MlnT for the USDA.
  • Weekly EU exports (Source: EC):
    • Wheat: 129KT / total this season: 16.1MlnT (-12.4%);
    • Feed Barley: 63KT / total: 3MlnT (-60.9%);
    • Malting Barley: 28.8KT / total: 1.9MlnT (12.9%).

Oilseeds

  • It was ‘correction day’ for the oilseeds except for palm oil which gained 1.1% today.
  • May-17 Euronext rapeseed opened higher and reached an 8-session high of 422.75€ but it could not keep momentum with crude oil abandoning more than 2% and both CBOT soybeans and soymeal dropping 1.5%.
  • Informa raised its Brazilian soybean crop estimate by 1.5MlnT to a record 108MlnT. The Argentine soy crop was left unchanged at 55MlnT.
  • Weekly EU imports (Source: EC):
    • Soybeans: 378KT / total this season: 8.8MlnT (-1.5%);
    • Rapeseed: 70KT / total: 2.4MlnT (+6.1%);
    • Soymeal: 82KT / total: 11.8MlnT (-15.4%);
    • Rapemeal: 2KT / total: 143.4KT (-57.8%);
    • Palmoil: 41KT / total: 3.8MlnT (-19%).

Chart of the Day #1: US Precipitation Analysis – last 30 days

Chart of the Day #2: Brazil Corn exports update

Futures & Options prices