- Stratégie Grains today updated their outlook for UK grain production, and the improved weather in recent weeks has clearly factored into their projections. They acknowledge the seasonal delay caused by poor weather early in the season, and report wheat crops to be around ten days behind normal. Early wet conditions have left root systems less than optimal, and (in a bizarre turn of fate) given current hot and dry weather there is now a suggestion that stress could well become an issue. That said, crop condition is much improved and yield has been estimated slightly higher. Wheat output is now forecast at 12.056 million mt, and total barley at 6.815 million mt.
- Combines are reported to be cutting winter barley in eastern counties of the UK, although we have no reports, as yet, on yield or quality.
- Reuters today reported that discussions with the IMF were no longer necessary following the support received from neighbouring Arab nations. The level of financial assistance received was stated to be sufficient to allow a financially secure period of transition according to their new planning minister.
- CBOT markets in corn and wheat closed lower amid a stronger US$ and talk of improved weather conditions, by which we mean a retreat from the projections for extreme heat, particularly across the US corn belt. In the face of potential record corn and soybean crops it would appear few have the appetite for sizeable long positions and are positioning themselves accordingly. Corn pollination risks from extreme head would seem to be evaporating at a brisk pace.