Weekly Grain Digest - 14th August 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

Sterling supporting market
Uncertain of European harvest quality
USDA increase in wheat stocks
Market View:
Flat global markets dominated the early part of the week after a month of continuous decline as traders awaited the USDA update on Thursday night before making their move.

The figures in the report were highly anticipated following a month of challenging weather for many significant growing areas in the world. Many expected production figures to be significantly lower though the latest USDA figures increased production in Soybeans by 3Mmt and world stocks up by 4.5Mmt. Similarly the world wheat stocks were increased by 4Mmt following a huge production figure for the Former Soviet Union area. These amongst other surprise figures created a highly bearish report with CBOT Soybeans trading as much as 30cents down on the news and London wheat futures (Nov 17) hitting another multi week low at 141.25.

Sterling continues to support UK wheat prices trading at 1.100 at the start of the week to under 1.0970 on Friday as post BREXIT economic data continues to disappoint the currency markets.

Another stop start week of harvesting in the UK goes by and the quality of the crop continues to be the focus of UK traders and consumers alike. In most areas a dry spell is needed to push on through harvest and prevent any further damage to crops.


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