Grain prices have recovered over the past week, buoyed by weather concerns in the US and EU, prompting buying interest before the next USDA report.
London wheat futures ended the week to Tuesday (9 July) up by £4.20, to £169.45/t for November, making ex-farm wheat worth between £150 and £170/t for harvest movement, depending on location.
“High temperatures in the US could be a big threat for corn ahead of pollination,” said a report by analyst Agritel. “At this time, 20% of the planted corn has usually passed the pollination stage, but this year only 6% of the crops have.”
In Europe, high temperatures were also a cause for concern. However, based on estimated yields, the EC was forecasting a 3.3% rise in wheat production, to 130m tonnes. Barley production was set to rise by 7%, to 58.8m tonnes, with maize up by 17%, to 70m tonnes.
Oilseed rape production was likely to increase by 4.5%, to 20.1m tonnes, with record plantings offsetting lower yields, said an HGCA report. Although soya bean and oilseed markets had been trending downward, weather concerns and improved crude oil prices meant domestic rapeseed ended the week up by £6/t, to almost £320/t ex-farm.