While the USA chowed down on turkey breast the rest of the world got to digest the latest International Grains Council supply and demand data. I would have preferred some nice tender breast than a report filed with more of the same “huge wheat stocks”, “bigger acres in Russia” talk we are all sick of reading…… is that heartburn I feel.
Basically the IGC believe that the 2017 wheat area will change little, which as we know could result in yet another big wheat crop in 2017-18. This year’s world wheat crop is now tipped to come in at 749mt, up 1mt on last month and 12mt higher than last year. World corn production was even bigger, a year on year increase of 71mt makes the world look very full of feed grain in 2016-17.

The rally in oilseed seen yesterday was thanks to the US EPA increasing the biofuels requirements for 2017. News that Brussels intends to reduce their equivalent ruling there from 7% to 3.8% did tend to take the market by surprise though as it is opposing the increase in renewables that the EU has peddled for so long now. Fancy the EU doing that in a year when rapeseed production is likely to be a little low.
Russia continues to be an aggressive exporter of both wheat and corn with Japan picking up 160kt of corn from the Black Sea this week