Weather fears firm global grain markets

Grain markets have firmed slightly following the latest report from the US Department of Agriculture and adverse weather in the Americas.

UK oilseed rape values increased by about £4/t in the week to Wednesday, to about £292/t ex-farm for spot movement. Feed peas and beans increased by £5/t to about £235 and £247/t respectively.

London wheat futures ended the week to Tuesday up slightly to £153.50/t for March, with the new crop up by £1.35 to £146.50/t for November.

The USDA report lowered global wheat and coarse grain ending stocks slightly, with dry conditions leading Brazilian officials to drop their corn production estimate from 79m tonnes to 75.5m tonnes.

In Kansas, 20% of the wheat crop was rated poor to very poor at the end of January – up from 6% a month earlier, with 41% of the wheat in Texas rated the same. “The lack of snow in some parts is causing concern from a soil moisture perspective, with crops approaching the end of dormancy,” said a report by HGCA.

The soya bean harvest was under way in northern Brazil, with positive yield reports so far. “But in central and southern Brazil, high temperatures and limited rainfall mean concerns are developing for crops in moisture-sensitive growth stages.”

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