American corn stocks are significantly higher than expected, according to a report by the US Department of Agriculture released today (30 September).
It pegged corn stocks at 43.4m tonnes, well above traders’ estimates but still 34% down on last year.
Wheat stocks were 12% lower than last year, at 66.7m tonnes – slightly higher than trade expectations.
But soya stocks were tighter than anticipated, at 4.1m tonnes, although that was still 42% higher than the same time last year, said the report.
Export trade continued apace, with Egypt buying another 240,000mt of Russian wheat, bypassing French and Australian offers.
Russian grain exports in September had reached a record 3.8m tonnes, following 3.3m tonnes sold in August, said David Sheppard at Gleadell Agriculture.
Ukrainian wheat was currently cheaper than Russian, and with a total grain harvest of 52-53m tonnes, exports could reach a record 24m tonnes, he added.
“Markets remain gripped by financial/economic woes and commodity values remain at the mercy of the politicians.
“But new crop values should be supported due to the need for increased US corn acreage and dry weather in key wheat producing areas affecting crop plantings.”
Winter rapeseed plantings in the UK were likely to increase, but German rapeseed area was likely to decline due to a very wet end to harvest, said trading manager Jonathan Lane.
“European rapeseed prices are still relatively strong and demand looks set to continue well into the New Year.”
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