Helping US wheat futures rebound were reports of higher Russian wheat offers out of the Black Sea and confirmation that Russian wheat stocks are at the lowest level since 2013-14. Weekly Russian wheat exports have been falling away over the last 28 days, with last week the slowest week for exports for the entire marketing year.
Back in the USA soybeans were firmer on the back of another reported sale to an unknown party, most likely China, of 185kt.
Corn found some support but not enough from ethanol production data. Up 43.4% from the beginning of lockdown, it’s still 21.7% lower than pre-pandemic demand levels. As restrictions are lifted demand is expected to continue to increase.
While on the fuel blend story there was a report that a Wyoming based oil refinery was converting over to produce biodiesel. A lot of smaller refineries in the US have taken a big hit on the back of oil prices in 2020, this may just be the first of many such conversions. As older plants need updating they may find it cheaper to simply convert to biodiesel.
France and Germany continue to suffer through and extended dry spell. NW France and NW Germany have seen next to no rain fall over the last 14 days. Spain, northern Italy and eastern UK is seeing similar rainfall figures. To the east Ukraine has seen a big turn-around with good falls. Central Russia and the Volga Valley are also seeing good falls. Kazakhstan spring wheat region is average.