News Grain TA
Grain TA
The wheat market showed signs of recovery last Friday. An attack by Ukraine on a tanker near the Russian port of Novorossiysk made the market nervous, especially shortly after opening. India announced that it will scrap the import duty on wheat. The government is taking this measure to reduce the wheat price on the domestic market. Rain in the forecast for the northern prairies of the US and Canada put pressure on the price in Chicago, causing the eventual increase not to be too bad. Furthermore, the grain deal remains a hot topic. Moscow accuses Washington of making Russian exports more difficult by no longer allowing the bank JP Morgan to transact with the Russian agricultural bank.
Corn is also benefiting from developments in the Black Sea region, although to a limited extent. Favorable growth conditions in the US, which are expected to last until at least mid-August, ultimately had a dampening effect on the market.
Players in the soy market are busy with yield expectations for the upcoming harvest in the US. The USDA estimates are seen as too high by many analysts, but opinions differ on how much lower the final yield will be. An average yield just under 51 bushels per acre is often found in various forecasts. Of course, it should be noted that the weather in the coming weeks will determine the final harvest.
Jurphaas Lugtenburg
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