Masham Micronized Feeds

EU Wheat Comments

18/05/12 -- EU grains finished higher with May 12 London wheat ending up GBP1.00/tonne at GBP175.00/tonne, new crop Nov 12 was GBP5.00/tonne higher to GBP158.80/tone. Nov 12 Paris wheat was up EUR8.25/tonne to EUR215.25/tonne.

On the week as a whole May 12 London wheat gained GBP2.50/tonne whilst Nov 12 added an impressive GBP10.60/tonne to close at its highest in more than six weeks. Nov 12 Paris wheat was EUR19.00/tonne higher on the week, closing at it's best levels in eleven months.

The second successive sharp monthly reduction to EU-27 wheat production prospects from Strategie Grains, and talk of potentially serious problems developing for Russian wheat unless rain arrives soon, were behind this week's rises.

Winter kill losses in France, Germany and Poland are said to have been heavier than realised, according to Strategie Grains. What has survived the winter appears to be in decent shape in France at least where FranceAgriMer now rate 67% of the wheat crop in good/excellent condition, up from 65% a week ago.

Wheat appears to have done a exceptionally good job of shrugging off outside market influences this week, with Brent and NYMEX crude both slumping to their lowest levels of the year so far on the back of the ongoing European debt crisis.

Euro weakness is seen remaining, which should at least help to support Paris wheat. Soft wheat exports out of Rouen more than doubled to 123,400 MT this week, helped by shipments of more that 75,000 MT to Algeria.

Chicago wheat gained more than a dollar a bushel, around 17%, this week - way outperforming corn and soybeans. Dryness concerns also exist here, particularly in the top producing state of Kansas where the USDA cut good/excellent ratings by eight percentage points on Monday.

CBOT Comments

18/05/12 -- Soybeans: Jul 12 Soybeans closed at USD14.05, down 33 cents; Nov 12 Soybeans closed at USD12.88, down 18 1/2 cents; Jul 12 Soybean Meal closed at USD417.90, down USD10.10; Jul 12 Soybean Oil closed at 50.32, down 40 points. The end result of a very volatile week, astoundingly, is that front month soybeans closed the week within a penny of where they began it. Nov 12 beans were down 33 1/4 on the week, meal rose USD6.00 and oil fell 158 points. Beans seemed to lose out today to unwinding of spreads with funds selling an estimated 7,000 soybean contracts, whilst being featured buyers of corn and wheat. Here's a new one for you, Chinese solar panels may have been partly to blame for some of today's declines. Yes, some newswires are reporting that today's selling in soybeans may have been linked to a US move to suddenly introduce a 30% import duty on Chinese solar panels, which they say are being unfairly dumped on the US market. A Chinese Ministry spokesperson said: "The US decision lacks fairness and China expresses its strong displeasure." China of course is far and away the largest home for US soybean exports.

Corn: Jul 12 Corn closed at USD6.35 1/2, up 10 1/2 cents. Dec 12 Corn closed at USD5.37, up 8 3/4 cents. Funds were said to have bought around 11,000 corn contracts on the day, so due to unwinding of long soybeans/short corn spreads. Corn also derived spillover support from soaring wheat prices this week. For the week overall nearby corn gained 27 1/2 cents, with new crop Dec 12 up 31 3/4 cents. Some pundits are already trying to get a US weather market going, with calls for a warmer and drier outlook for the next ten days being behind some of today's strength. Meanwhile Iowa, Illinois and Indiana may be in for their third warmest May since 1895, according to T-Storm Weather.

Wheat: Jul 12 CBOT Wheat closed at USD6.95 1/4, up 37 1/2 cents; Jul 12 KCBT Wheat closed at USD7.05, up 33 cents; Jul 12 MGEX Wheat closed at USD7.92, up 24 3/4 cents. Chicago wheat jumped more than a dollar this week to post a 17% gain compared with last Friday. Kansas wheat was also up more than a dollar, with Minneapolis gaining over 50 cents. Funds were estimated to have covered in around 10,000 of their short position in Chicago wheat today. Jul 12 Chicago wheat managed to post its highest close on the weekly chart since the first week of November. Weather concerns around the world, including on the southern Plains, have spooked funds into closing out some of their shorts in Chicago wheat this week.