CBOT wheat prices lost 2%, while corn prices gained 0.2% last week

23.05.2018

Wheat. During May 10-17, CBOT wheat prices lost 2%, reports UkrAgroConsult.

At the beginning of the reporting period, wheat prices were pressured by the weather factor - rains in producing regions of the Great Plains in the USA. By May 13, the share of US winter wheat in good and excellent conditions had increased by 2 points to 36% (51% in 2017).

Weekly data on fieldwork in the USA also pressured wheat quotations. By May 13, spring wheat sowing had advanced by 28% to 58% of the plan (75% in 2017, 67% - the five-year average). Wheat had emerged on 14% of the acreage (37% in 2017, 36% - the five-year average).

Low weekly exports during May 03-10 was bearish for the market. Sales of the old-crop wheat were below market expectations. Actual shipments were 40% less than during the same week last year, given noncompetitiveness of US wheat supply prices.

During the second half of the week, bullish factors dominated the market, in particular concerns of market operators about wheat production in other major exporting countries. Soil drought was noted in Australia, where a sowing campaign started. Waterlogging of fields was seen in Canadian province of Alberta, while Saskatchewan and Manitoba reported on shortage of soil moisture, which was unfavorable for crops development. Moreover, the market closely followed the development of arid conditions in the Black Sea countries.

Corn. Over the period under review (May 10-17), CBOT corn prices gained 0.15%.

Rains in the Midwest of the USA can slow down corn sowing, which pace has already reached the multi-year average. Over the week, farmers made significant progress in sowing. By May 13, sowing had been carried out on 62% of the intended area, which is 23% more than the previous week (63% - five-year average, 68% - in 2017).

The growth was also triggered by good weekly data on US corn sales. Actual shipments and contracted volumes in the 2017/18 season had practically reached the last year's level by the reporting date.

At the end of the week, the market responded positively to the news that China had stopped an anti-dumping investigation regarding the US sorghum.

The price increase was limited by the lack of clarity about further participation of the USA in the NAFTA trade agreement.

Check up prices and enjoy free online charts on UkrAgroConsult’s website. Daily updated commodity exchange prices (CBOT, ASX, BCE, MATIF, WCE, LIFFE) and cash market quotations for wheat, corn, barley, soybean, sunflower and other agricultural commodities in Ukraine, Black Sea region and world are available in section "Prices and Futures".

 

UkrAgroConsult

Readers choice: TOP-5 articles of the month by UkrAgroConsult