Keeping up to date with all of the latest market information is crucial to developing a marketing strategy for grains and oilseeds. Here we have all of our latest analysis and insight to help guide you through market movements and provide a clear, impartial view on what it all means.
As we move towards harvest 2020, the value of imported grains and oilseeds will play a key role in setting the price of domestic supplies, the value of imported maize will prove pivotal to setting values in feed markets.
Planting figures for US maize and soyabean crops were slightly below market pre-release estimates, according to Monday’s US crop progress report. Progress has slowed from the rapid pace seen at the start of the season, but remains above the five-year average (2015-19).
By and large, global wheat markets were supported last week. The continuation of new crop weather concerns helped Chicago wheat futures (Dec-20) gain 1.7% Friday-Friday, although movement throughout the week varied.
UK futures ended the week higher in contrast to global markets. Prices fell through the week following the global pattern, but gained at the end of the week as sterling dropped sharply against both the US dollar and euro.
Weather prospects for European and Black sea wheat remain similar to last week, and provide a somewhat bullish sentiment for markets. Pressures remain in the longer term from a build-up in global wheat stocks.
During our barley week last week, we highlighted the increase in trade tensions between China and Australia, with the former potentially imposing a $74/t tariff on imports of Australian barley. This offers a high degree of price risk for domestic barley, particularly given the significant export volumes expected from the UK next year.
The closure of the food service industry for almost two months now has reduced demand for meat and grain products. The impact of coronavirus on meat and dairy production will likely translate to a fall in demand for feed grains.