Farming News - Gleadell market report shows support for grains
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Gleadell market report shows support for grains
WHEAT
Ukrainian wheat lands in Spain, with 300,000 tonnes of Black Sea origin wheat expected to arrive in January.
China's State Grain Admin confirms it is stockpiling domestic corn from farmers to shore up price/replenish reserves.
Indian FARM Ministry sees record 2012 wheat output (higher acreage/weather), following this year’s record of 85.93mln/t.
Argentine BAGE sees 2011/12 wheat crop at 13.6mln/t as wheat yields benefit from rains earlier in the season.
New South Wales rains are seen damaging wheat crop and delaying harvest – quality to be affected with downgrading to feed. Latest Aussie crop estimates are over 28mln/t – a record.
The Canadian bill to dismantle Canadian Wheat Board’s monopoly powers becomes law – farmer directors launch court challenge.
Grain markets rally on South American drought concerns – lower crops seen beneficial to future US export potential.
Russian grain exports declined in November to 2.77mln/t, and are projected to fall further in December and January.
US wheat sales expected to pick up starting February as Russian/Argentine wheat loses its competitive edge.
Summary
Grain markets over the past week have seen sharp support from dry conditions in South America, mainly impacting onto potential corn and soybean crops. Lower crops would support the potential of increased export from the US later in the season. In addition, short-covering ahead of month, quarter and year-end provided market support, with traders looking to limit risk exposure as many prepare for the Christmas/New Year holidays.
Some easing of concerns about Eurozone debt took some of the recent gains off the market as investors were encouraged by positive German economic news and Spain’s ability to sell more debt than planned.