Following last weeks USDA report which provided details regarding updated global wheat stocks we have seen prices for wheat ease domestically. The report highlighted an increase of 2.38Mt to global ending stocks which has helped support a bearish week in the market, lowering prices. This movement was also aided by Australia reporting that they were on course for a record crop this year and we have seen increases in production for Canada and Australia. US Wheat stocks have been increased due to reports of lower exports.
Barley is now considered by many to be on level with wheat in regard to price as it remains difficult to to purchase as many sellers are still reluctant to trade.
Soybean prices have continued to rise on the back of ongoing concerns of potential workman strikes in Argentina which would cause disruption to loading and movement of containers/Vessels. Many eyes will now turn to South America where much dry weather has been forecast in the coming days and concerns over La Nia warning are ever present. Poor Weather conditions here will certainly have an impact on market direction and with global vegetable oil prices rising we are likely to see rapeseed prices continue to stay at new highs as supply tightens.
Last weeks USDA report offered little change to expectations for global ending stocks. The dry weather already highlighted in South America could impact crop potential for maize in key areas and any potential yield loss would likely have a negative impact for prices and push the market in a bullish direction. The Argentinian maize crop is reported to be 40% planted, 10% behind the average pace.
With ongoing rises in energy costs, fuel prices and ongoing difficulty with supply and freight availability we are likely to see a volatility persist within the market for some time.
