- Probably the biggest single news item today was the report of a field of unapproved GM white wheat being “found” in Oregon, USA. Japan has suspended imports for the time being on the news, and the EU has kindly agreed to “block any US GM wheat”.Despite reassurance from the USDA that the food chain will be unaffected there will certainly be a “blip” in US white wheat sales.
- Today has been a “down day” in Chicago, albeit slightly, it is possible that the trade is coming to terms with the potential size of new crop harvests around the world despite the short term headlines of planting delay and ongoing unfavourable weather. Many wise heads will be suggesting that the time is not yet right to panic over acreages and weather issues, there will be plenty of time in coming months to digest these issues. Month end profit taking and fund rolling will also likely have taken its toll on prices.
- The US continues to struggle with stormy and wet conditions in the midwest and great plains with both Iowa and North Dakota close to record May rainfall totals. In this case the old adage of “rain makes grain” is likely not the case but there is still time for a turn of fortune and warm dry conditions to make up for the soggy start to the season. However, the forecasts are calling for continued wet conditions in the great plains and western corn belt although east of the Mississippi is looking closer to normal precipitation. A glimmer of hope may well come from the fact that temperatures are not lower, allowing steady soil moisture evaporation and crop transpiration which help avoid overly wet field conditions.
- News from the Ukraine brings more hope in the form of improved rainfall in the eastern region. Forecasts for the area, including Russia, are both cooler and wetter which will assist crops which were subject to hot and dry conditions.
- Brussels has issued weekly wheat export certificates for 291,591 mt, which is more than was issued last week. The season total is now 19,741,262 mt, which is above last year by 5.571 million mt (39.3%). Once again it appears that there are still buyers in the market looking for physical delivery of available grains.