Wheat
Last weeks USDA report was considered to be slightly bearish as world ending stocks for wheat rose by 1.8 million tonnes. After an initial ease seen towards UK Wheat prices, May 22 UK Wheat Futures have seen three consecutive days of gains after dropping almost everyday last week and premiums remain high against the futures. Wheat and Maize markets rallied on the back of concerns surrounding Russian and Ukraine relations which could potentially disrupt global Wheat trade. US Wheat also found support this week as ongoing dryness continues in the US Plains.
Barley
EU 2021/2022 Barley exports have reached 4.86 million tonnes compared to 3.96 million tonnes a year ago. China and Saudi Arabia were the largest destinations for EU Barley with 2.02 million tonnes and 506,000 tonnes being shipped.
Soya
The USDA trimmed its Brazilian and Argentinian soybean production estimates for this season (2021/2022) by 5 million tonnes and 3 million tonnes respectively. These cuts were larger than average trade expectations but, did not go as far as some had expected. The cuts were a mainly due to ongoing dry weather in South America. Global Soybean stocks remain tight with world consumption at 374.9 million tonnes, exceeding this seasons production by 2.4 million tonnes.
With such tight stocks, the market will remain sensitive to any news regarding South American production. South American crops are set to make up 54% of global soybean production and any further cuts will tighten supply and land support to rapeseed prices also. Eyes will now focus on weather forecasts for South America, with Argentina seeing rain over the weekend and more due by the end of the week. Small areas of Brazil have received rain but the majority of key areas are forecast to remain dry.
Maize
Although heavy rain was seen in Argentina and some small parts of Brazil, there were mixed reactions and uncertainty over the extent of the benefit, which has lead to support to maize prices. EU maize imports so far this season were at 7.72 million tonnes, against 9.2 million tonnes a year ago, according to the data.
