Weekly Grain Digest - 26th June 2017

The COFCO UK Weekly Digest brings together a wealth of global grain intelligence to summarise this week's market drivers for grains and oilseeds.

Grain

Weather forecasts cooler and wetter in US and Europe
Early reports suggest French crop good quality
Above average temps in Spain / France
Market View:
Markets opened with bullish intention at the start of the week as above normal heat in western Europe elevated concerns over crop conditions particularly in Spain and France. Furthermore, the latest US crop ratings were below trade forecasts at 41% good / excellent down from 45% the previous week and significantly lower than 76% a year ago.  However, gains were short lived as mid range weather reports suggested that cooler temperatures and wet weather were forecast in the US and Europe. These reports quickly tempered markets seeing the July Chicago wheat contract drop quickly from a high of 474 cents to 455 cents at its lowest (though it has recovered slightly from this low). As a result, all markets are off their highs from earlier in the week but remain reactive to changing weather forecasts. 
 
In the UK, domestic trade is largely confined to the old crop but we are beginning to see more consumer activity in the north and west of the Country. Over the coming weeks, EU markets will become increasingly driven by quality and yield as harvests commence. Early reports from France suggest average yields and much better than anticipated quality.

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