US snow delays grain sowing

In the United States it seems more Christmas than spring. Due to snowfall, there has been a significant delay in sowing. In all likelihood, April will be the coldest since 1950 in the major grain regions of the US. There is even snow falling at the moment in, for example, Iowa, Ohio and North and South Dakota. In other states, drought plays a major role. So farmers must be patient when sowing corn and wheat.

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Although also in the EU the has been delayed sowing the grain crops will most likely not affect yields. Sowing is also lagging behind in other areas, in Ukraine work is 48% behind last year.

Expectations
The expectation of the European grain price for the coming season is a low starting price. This is because exports are performing poorly. Consumption in the European Union is increasing, but this is not enough to slow the increase in ending stocks.

This is evident from the export data from Brussels. In the period from April 11 to 17, more than 536.000 tons of grain were exported, of which 373.000 tons of soft wheat. Influential analyst firm Strategy Grains has once again lowered expectations for soft wheat exports this season, by 900.000 tonnes to 20.3 million tonnes. The sixth reduction in a row.

Poor exports 
Based on current data, the EU is a net exporter of 5,9 million tonnes of grain, compared to 16,8 million tonnes in the same period last season. The cause is the strong competition from Russia with the large supply of relatively cheap wheat.

US wheat prices fell last week on reports of rain in key US wheat regions. But it is now rising again because the rain is disappointing and the crops are in poor condition.  

Rain caused wheat prices to drop on the CBoT in Chicago.