Cereals market strongly influenced by weather

The drought in the American Plains again caused tension. Although there stir has been predicted, it does not seem to fall in the desired places. Analysts therefore fear: if the rain does come, will it not fall too late? That would mean that the damage would no longer be possible produce.

The International Grains Council expects that the world wheat harvest will decrease in the 2018/2019 season; by 17 million tons to 741 million tons. Nevertheless, the global wheat market this information cannot yet be translated into an increase in the wheat price.

Russia
The Russian winter grains are in good condition, mainly because enough snow has fallen. This means that the damage caused by freezing out is kept within limits. Only 3% to 5% of the winter wheat area is said to be in poor condition, according to analysts.

As a result, Russia appears to have an important role to play again as a global grain exporter next season. The Russian ministry already assumes grain exports of 52 million tons (of which 37 million tons are wheat), an increase of approximately 40%.

Wheat supplies in China
There are concerns about world wheat supplies; not because of the volumes, but because of who owns those volumes. Like this would China have a hand in 50% of the wheat supply, 40% of the corn supply and 20% of the soybean supply. Such quantities could affect trade and impose dictates on grain markets.

This article is part of the Arable Farming Pro Trend Report published this week, which also focuses on the potato market, the interest rate market and the onion market. Click here to read the Trend Report.