CBOT wheat prices strengthened due to precipitation deficit in the main producing regions

12.06.2018

WHEAT. During May 31 - June 07, CBOT wheat prices strengthened slightly (+0.1%). The US wheat export spot prices (SRW) for July delivery remained at the previous week’s level, while French wheat supply prices kept growing (+USD 3/MT).

Futures strengthened on information about precipitation deficit in the Black Sea countries, Argentina and Australia. Excessive rains were seen in the EU countries, with the exception of Poland, Spain and Portugal, reports UkrAgroConsult.

Against the backdrop of soil drought in the US winter wheat producing regions, its conditions kept worsening. As of June 03, the share of plants in good and excellent conditions was 37%, compared to 38% a week before (49% on the same date last year). At the same time, the start of winter wheat harvesting limited the price growth.

The weather factor supported French wheat prices. Wheat exports from the EU countries remained low.

CORN. Over the period under review (May 31 - June 07), CBOT corn prices lost 4.52%. The US corn export prices decreased by USD 10/MT (July delivery), while Argentinean corn supply prices fell by USD 8/MT, reports UkrAgroConsult.

Sowing of spring crops in the USA is almost complete. By July 03, corn sowing had been carried out on 97% of the intended area (+5% over the week). Over the week, the share of plants in good and excellent conditions decreased from 79% to 77%. However, this is higher than last year's 68%.

Market operators estimate the future US corn crop at a high level, which remained the main bearish driver for corn futures.

Brazilian farmers began to harvest the second corn crop. By this date last year, farmers had gathered corn from 3% of the intended area. Devaluation of Brazilian real still triggers the growth of farm sales in the domestic market.

 

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

 

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