Feed Raw Materials Update
August wheat today is £30.00 below the same day last year. The UK crop has not been significantly harmed by the hot spell of weather and estimates are now put at 12.5 million tonnes. Early indications are that quality is good and yields are better than expected.
Production is up in the EU AND Russian yields are up 25%.
Demand has continued from the Chinese who are now buying substantial amounts of wheat, this suggests that they have a problem with their domestic crop. Supplies at present appear plentiful and will exert downward pressure unless some new factors emerge.
Hi Pro Soya
With the current weather forecast it still feels like this market has further to fall. As for the nearby positions, things are still very tight and shipments are still being delayed. As we have seen this year, crop transition months can be very difficult to negotiate especially if the US harvest is slightly delayed or hampered by rain. The next 3-4 weeks are still critical for crop development and any major change in the forecast could undo all the good done so far
Rapemeal has now dropped £100.00 per tonne in a month for spot purchases. Further forward prices have also fallen faster and further than many anticipated. With the European crop now set to be above average attention should turn to Canada where their Canola crop due to late development this year may potentially have some frost risk. Generally things look much better than last year.