Sufficient supply on the world market and few news from the Black Sea region are depressing the mood on the wheat market. That is different with corn and soy. The weather seems to be the biggest merchant there this period.
The September wheat contract on the Matif yielded €4,75 yesterday (Monday) to €228,75 per tonne. The subdued mood in Paris spread to Chicago, where wheat fell 0,9% to close at $5.88 a bushel. Corn and soy were on the rise on the CBoT last trading session. Corn rose 1,6% to $4.78½ per bushel. Soybeans rose 1% to $13.95¼ per bushel.
Relatively large supply of wheat on the world market and a possible solution for exports from the Black Sea region, to a certain extent set the tone on the wheat market last trading session. The fact that there is a lot of talk about a grain deal again is due to Turkey. According to sources within the Turkish government, a summit in Sochi is planned in the near future with Turkish President Erdogan and Russian President Putin in Sochi. Wheat exports in the US amounted to 390.000 tons. This exceeded the range of trading expectations. This ranged from 200.000 to 350.000 tons, but that was not enough to change the mood on the market.
Warm weather emergence
In corn and soy, weather reports are once again taking control of the market. The chance that warm and dry weather will return to the United States is increasing, according to meteorologists. Favorable for the harvest, but the problem is that corn and soy still have a few weeks to go before the combines can enter the country. The fact that grains in the US have taken a hit from the recent heat wave is reflected in the new Crop Progress report from the USDA, which was released last night Dutch time. Of the corn acreage in the US, 46% received a good or excellent rating. That was still 48% last week. Soy also suffered somewhat: 58% of the area received the status of good or excellent compared to 59% last week.
The wheat and barley harvest is well over. 54% of the spring wheat has arrived. This means that the harvest is lagging behind the five-year average, which stands at 63% this week. The level of spring wheat, which is still stable, has deteriorated somewhat with 37% good or excellent. Last week this was still at 38% and last year in this week 68% of the area received the status of good or excellent. 61% of the barley area has been harvested compared to 69% in the five-year average. Oat threshing is also well advanced with 82% of the area threshed. Last year it was 85% this week.