Improved weather across much of the northern hemisphere have eased concerns over new crop production.
In the UK, April was wetter and colder than the long-term average, alleviating drought concerns and putting cereal crops in very good condition, according to ADAS. “Cooler temperatures slowed growth in April so crop progress is now normal for this time of year compared with the end of March, when they were ahead of normal,” said a report by HGCA.
“Almost all spring barley (96%) has been planted and emerged in good condition. Disruption from on-going rain is not currently a severe concern.”
November 2012 wheat futures ended the week to Tuesday (1 May) down by 40p/t, at £155.15/t. However, old crop values had been supported by strong global demand for maize, with the largest single-day maize purchase recorded since 1991, at 1.56m tonnes. Spot wheat values ended the week to Wednesday up by 60p, to about £170/t ex-farm.
American new crop markets were also under pressure due to better weather conditions, said analyst Agritel.”Corn plantings reached 53% last Sunday, above traders’ anticipations and the five-year average of 27%. Soybeans are also early with 12% planted, up from a 5% five-year average.”