- Markets have continued lower today in slower trade and some of the losses have been regained in later trade as crude oil and outside markets have displayed some stabilisation. The decline was led by wheat, for a change, as Egypt secured Eastern European and Black Sea wheat in its latest tender, amongst a pretty good volume offering, and Kansas futures saw a big volume of deliveries tendered.
- GASC’s latest tender saw three French offers for the early Jan ’15 shipment period, albeit prices were not sufficiently competitive, Romania picked up 120,000 mt and Ukraine 55,000 mt. EU wheat markets declined sharply, probably more on a little publicised meeting in Moscow between the AgMin and Deputy PM at which it was decided to take no decision on export restrictions. With no further meetings scheduled, the market gave back recent gains in sharp style. Doubtless Egypt’s GASC is probably delighted to have something competitive other than French on this occasion. US was notable, but not surprising, by its lack of offers given recent upward price moves and this continues to highlight their lack of current competitiveness.
- Informa Economics today updated its global crop production estimates including a Brazilian soybean output for 2014/15 at 93.5 million mt, a 500,000 mt increase on their previous estimate. Argentine output was trimmed 500,000 mt to 55.5 million mt. Of note was the estimate for 2015/16 Russian wheat output at 55 million mt, which at 4 million mt below the current year is an improvement on more recent pessimistic suggestions.