- Today saw further pressure on US ag markets with soybean complex numbers lower, although front month Aug ’13 made some strong gains on short covering (as we suggested may happen in our weekly wrap up). Corn ended slightly lower as stormy (aka wet) weather moved across the central plains and south mid-west. A lack of threatening weather conditions is the current driver, and looks set to last into mid-August. The predicted cooler temperatures bode well for pollination (compared with last year!) and there is some talk of 160 bu/acre plus as a national yield! The wheat market closed a touch higher as funds covered some short positions despite the price threat from the looming large corn crop.
- Closer to home the EU commission forecast the EU 2013 wheat crop at 131.7 million mt, an increase from 128.9 million mt month on month, barley output at 59.4 million mt was up from 58.3 million mt month on month and the 2013 corn crop was put at 70.9 million mt, again a month on month increase from 69.7 million mt previously.
- The latest numbers had a bearish impact on both London and Paris closing price levels. Recent stormy weather does not appear to have damaged crops (at this time) and quality reports are looking a touch more encouraging with improvement in protein levels in France as harvest progresses northwards. The french crop is reported to be 14% complete vs. 34% complete this time last year. Southern Germany is starting its wheat harvest, reports on yield and quality are too few and far between to take notice of at this time.