The unrest on the grain market increased last trading session. Maize and soy in particular recorded significant gains. This is due to a combination of good demand for these agricultural raw materials on the world market and setbacks in the growing season in South America. In North America, the corn and soy harvest is going well, but the USDA reports a minor setback for the upcoming winter wheat harvest in the Crop Progress report.
The December wheat contract on the Matif closed €1,50 higher yesterday at €233,75 per tonne. Wheat also made a cautious move up 0,7% to $5.79 per bushel on the CBoT. Corn rose more strongly, gaining 2,9% to $4.77¼ per bushel. Soy was on par with corn last trading session, closing 2,6% higher at $13.68 per bushel.
The corn and soybean harvest in the US is progressing steadily. 88% of the corn has been harvested, which means that this season remains narrowly ahead of the five-year average of 86% for this week. In one state, North Carolina, the corn harvest has now been completed. Soy is 95% indoor compared to 91% in the five-year average. The soy harvest has been completed in South Dakota and Louisiana.
Winter wheat planting is also well advanced in the US. Of the planned area, 93% is in the ground, which is equal to the five-year average. 81% of the wheat is above, which is just slightly above the five-year average of 80%. The condition of the winter wheat has deteriorated slightly. 47% of the area receives a good or excellent rating. That was 50% last week. According to some analysts, drought in Kansas remains a risk to the potential yield of winter wheat next harvest. The decisive factor will be the weather next spring. In any case, the starting position of winter wheat this autumn is the best in years.
China is in the market
Unrest in the corn and soy markets increased last trading session. This is partly due to setbacks regarding the weather in Brazil. We have written about it regularly here, the north of Brazil is warm and dry while the south suffers from excessive rain. And according to the weather reports, that will not change this week. In fact, new showers are forecast for the south of Brazil. The demand for corn and soy from China is increasing according to various sources. This is evident from, among other things, the 3 million tons of soy from the US that was captured by China last week and unknown destinations that are also suspected of being Chinese buyers.
The fastest route for sea freight between Asia and America is via the Pacific Ocean via the Panama Canal. Due to a low water level in the Panama Canal, restrictions apply to ships here. Some ships are therefore now diverted via the Suez Canal. A trip to Asia therefore takes approximately ten days longer. In the already somewhat nervous market, this will push prices up even further, according to some experts.