More cuts to harvest estimates around the world sent grain prices up by about £5/t on Monday (30 July), almost recovering last week’s losses. London’s November feed wheat futures contract rose by more than £5/t to £193/t by late afternoon.
Two organisations have recently made larger cuts to US maize production than the US Department of Agriculture’s own forecast as the drought continues. The International Grains Council cut its estimate of the US crop by a dramatic 14% to 300m tonnes last week, compared with 314m tonnes last year. Analyst Informa Economics put the crop even lower at 292m tonnes against the USDA’s 329m tonnes.
IGC is forecasting the world wheat crop at 665m tonnes, a drop of 30m tonnes on last year, while Russia is estimated to produce 45m tonnes of wheat and exports 60% down on 2011/12.