GRAIN MARKETS

Jonathan Lane, ADM Agriculture’s head of grain trading, comments on the wheat market:

The forecast for hotter, warmer weather across much of the western corn belt and northern plains has put fresh bullish impetus into US grains markets. Thursday’s USDA reports caused little excitement as US corn and wheat numbers were much as expected.

On the global front, ending stocks for 2021-22 came in ahead of trade expectation. Although US and Canadian spring wheat production remains at threat as heat and dryness concerns intensify. US winter harvest has commenced and improving conditions in the EU/Black Sea could further enhance production numbers. Strategie Grains reports that larger wheat crops are expected in Europe, lifting its EU-27 projection 1.5 million tonnes on the month m to 131.1m tonnes.

It did add that cooler conditions might lead to a late-than-usual harvest. UK crops continue to improve due to the recent more-favourable weather conditions, with estimates of this year’s wheat harvest now exceeding 15m tonnes.