- US wheat crop condition data has been released as follows:
- Today has seen weather premium being added as cool to cold conditions and further light rains have continued across the Midwest and remain forecast for much of the coming week. Concerns are growing that crop development delays will result in reduced yield and overall output.
- Crops are struggling in the US right now and it will be June weather that will be the saviour, if improvements are seen. The crops are shallow rooted and any lasting heat or dryness will cause stress levels to rise. Fund short positions remain a point to watch with a wary eye as any change of heart could well see prices receive a sharp upward shock.
- Soybeans continued higher as it seems selling that was tied to the Brazilian currency was largely done and dusted last week, and US weather has taken over trader’s focus. US soybean planting progress reached 53% vs. 56% last year and a five year average of 52%. Despite climbing ahead of the average there is no doubt the crop needs warmth.
- Corn in the US added modest weather premiums today and US$ weakness added further support. The US corn crop reached 84% planted, the same as last year and almost on the longer term averages. Condition of the crop is mixed and we await official data starting next week. Warmer and dry conditions will go a long way to helping the crop develop its full potential/
- US wheat futures were supported by US$ weakness and EU prices were buoyed despite €euro strength. Global exchange rates are assisting US demanding with prices at multi yea lows it is tough to support a bearish outlook. Lasting heat and dry conditions in Europe and Black Sea would not be welcomed.