Prices 24/10/16

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The AUD was weaker against most of the major currencies overnight bar the Euro. This should help counter any pressure on local prices due to a lower close on all three US wheat grades last night. Outside market pressure had more to do with grain prices last night than any fundamentals. US soybeans and corn did manage to close higher after two sided trade while wheat could not. With November soybeans and ICE canola saw some technical trade and positioning as the contract approaches expiry.

Russian wheat harvest is closing out with official estimates in at 98% complete and 75.7mt in the bin. New crop sowing is progressing well there with around 16mha in which is close to 93% of official estimates. What ever happened to the phrase “bad prices cure bad prices”, I suppose if we all had the same value currency they may well be the case.

StratGrains expect to see about a 6% reduction in EU durum acres in 2017. Soft wheat area is not expected to decline by as much but with around a 300,000 ha reduction it is better than nothing.  All up the EU is expected to sow around 56.6mha if soft wheat in 2016 for the 2017 harvest.

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