Cereals

  • Rainfall across western Europe is at 30% of normal levels in places which is causing concern for both spring plantings and winter crops should it continue through May.
  • Prospects for Rainfall across UK/ France and Spain over next 10 days remain limited, with Germany forecast relief within the next 6-10days.
  • Markets are getting nervous regarding EU moisture with risks of crop damage should it continue through May.
  • In the US, storms are expected to limit any concern of Dryness for the Midwest.
  • Current corn plantings in the US at 6% are below estimates of 8% and the 5 yr average of 9%.
  • The Argentine wheat harvest is seen rising 1.2MT to 17.5MT by the Buenos Aires Grain Exchange.

Oilseeds

  • In NE France, 20% of the rapeseed area is at risk of a cold frost tonight.
  • A record soybean area in the US may benefit further from corn plant delays, although still very early, with the key month of planting still ahead.
  • China have cut the VAT rate on agricultural products by 2% to 11% which is expected to support soybean imports and supported prices in this afternoons trade.

Of interest

  • Sterling lost some of the ground gained yesterday against the Euro following the announcement of the snap election announced by Theresa May and backed overwhelmingly by Parliament today.

Chart of the Day#1: Last 30 days precipitation – France

Futures & Options prices