- Markets have found some positive ground today both here, in Europe, and in the US. Early news was thin on the ground but Reuters crop forecaster, Lanworth, issued its crop estimates which put the USDA figures into the “yesterday’s news” category! World 2013/14 wheat output at 694 million mt is below the USDA’s 701.1 million mt; global corn output of 965 million mt is marginally below the USDA’s figure of 965.94 million mt and global soybean output of 286 million mt is slightly over the USDA’s 285.5 million mt.
- Key to their lower wheat number is reduced output in the US, Australia and Ukraine. Corn output numbers are lower as a result of reduced Brazilian production.
- Subsequently the markets received something of a boost from a jump in ethanol production to its highest level in 11 months. Added to feed consumer purchases of corn the market has found some support which transferred across to wheat and soybeans.
- Weather is once again an issue, today’s UK forecast includes snow on higher ground in coming days, which when coupled with strong winds is expected to produce a local wind chill temperature equivalent to minus 12℃ (10℉) four weeks prior to mid summer! Little wonder crops are lagging behind average development.
- Oil World today cut its outlook for world rapeseed output by 1.6 million mt mom to 63.99 million mt. Reduced output in the UK and France is cited as the reason, the EU crop is forecast to hit 19.89 million mt (down from 20.2 last month) with the UK at 1.9 million mt, a five year low.