Prices 26/7/19


It’s been pretty hot across much of France again over the last couple of days, with temperatures pushing up to 40C across the central districts and towards the NW. Germany has also see pockets of 38C towards the east. Paris milling wheat futures moved a little higher while London feed wheat was actually a little softer in line with MATIF corn futures. Temperatures are expected to remain hot again on Friday but cool significantly over the weekend. The heat will move east with very hot conditions expected across Romania on the weekend.

In the US the milder weather outlook and good weekly export data for wheat helped SRW futures at Chicago buck the trend lower in corn and soybeans. The resilience in wheat was not great though with just the nearby months in SRW remaining unscathed. HRW futures slipped by the end of the day while spring wheat came out flat to a smidge higher.
Weekly US export sales came in at 658kt, well ahead of expectations and about double last weeks reported volume. Mexico was the main buyer again.

The International Grains Council had their monthly stab at predicting world grain production. The IGC pulled wheat production back to 763mt, that’s about 8mt less than the current USDA forecast. The European Commission has also reduced EU wheat production estimates back to 141mt on the back of a hotter than average summer. IGC reduced volume from the EU, Russia and Canada.