Farming News - ADM Agriculture Wheat Market Report by Jonathan Lane
ADM Agriculture Wheat Market Report by Jonathan Lane
US wheat prices are up $4/t on the week, supported by a sharp fall in the value of the US dollar.
While the crop condition of US winter wheat slipped slightly on the week, initial ratings for the spring wheat crop (80% good/excellent) were above last year's 74%.
Argentina's wheat sowings have reached 15% complete amidst talk of dwindling soil moisture. The crop is still expected to hit a record 21mln t from 6.8mln ha.
However, Ukrainian wheat exports are predicted to fall to about 18mln t in 2020/21 due to smaller harvest, although no official export limits have been agreed between the ministry and exporters.
That compares with 20.2mln t so far this season, part of a record Ukrainian export drive of 54.1mln t, including 28.4mln t of maize.
The EU Commission lowered its forecast for the 2020/21 EU wheat crop (excluding the UK) by 4.3mln t, to 121.5mln t. It also reduced exports to 26.5mln t from 28mln t previously.
French wheat crop conditions fell one point in the week ending 25 May to 56% good/excellent. That is the lowest figure for this time of the year since 2011.
UK (London) new crop futures are down £2/t on the week and well off the highs witnessed late last week, mainly due to the pound strengthening against the US dollar.
Although rain was forecasted for much of the UK this week, so far some areas have seen very little. It has turned much cooler, but moisture is much needed to stabilise crop conditions.
Kazakhstan's Ag Ministry expects the country to harvest 18.0-18.5mln t of grain in 2020, with grain exports seen at 7.0-7.5mln t.
GASC (Egypt's official importer) has purchased 120,000t of Ukrainian wheat for July 10-25 shipment, as the country tries to boost up its strategic stocks amidst the domestic harvest.