US grain markets close firmer, whilst EU markets close largely unchanged on the week,
as US/SA weather continue to dominate the focus.
- Russian 12.5% protein wheat values firm to circa $200 FOB (up circa 5% since the start of Jan). US/EU wheat continue to struggle to compete.
- US corn market continues to appear finely balanced, with strong export/ethanol/feeding demand underpinning prices and large amounts of unsold corn hanging over the trade.
- Iraq buys 150tmt hard wheat (Australian/Canadian/US origin).
- US funds continue to largely cover in short positions – now estimated -75,900 (CBOT SRW wheat), 15,000 (CBOT corn).
- Strategie Grains place EU 2017/18 wheat crop at 141.7mmt, versus 141.8mmt last year.
- US weekly corn export sales continue to grow, with 1.974mmt reported (avg. of circa 1.7mmt over the last 5 weeks). Wheat sales of 311tmt in line with market expectations.
- ABARES increase Australia’s 2017 wheat crop estimate to 21.2mm, up from 20.3mmt prev.
- US Southern Plains weather continues to look dry in the extended forecasts – though some good rains are indicated for the east of the plains. US drought monitor highlights Kansas conditions to be the driest on record for the last 3 months.
- Ag Rural report Brazil’s corn harvest to be 15% complete (29% last year). Safrinha corn planting progress seen at 46% complete versus 58% last year (41% the 5 year average).
- Buenos Aires Grain exchange suggest 56% of Argentina’s soybean crop and 58% of their corn crop is in poor/very poor condition. Below normal rainfall and above normal temps expected for the next 2 weeks.
- Some longer term forecasts indicate freezing conditions for some Black Sea areas. EU growing conditions continue to appear unthreatening.