Prices 14/2/17
Fundamentals across the USA wheat belt remain favourable for wheat production, warmer weather east of the Rockies and good soil moisture is likely to see the winter wheat come out of the freeze in almost ideal condition.
Very early in their winter there was some talk of winter kill in western Kansas so that is about the only place to watch in the US at present. With higher temperatures across parts of Texas resulting in wheat breaking dormancy it is worth watching the weather map going forward, a late season freeze would do damage and they are well and truly overdue for one.
The strength in US wheat futures continues to come from fund liquidation of a massive short position built up over some time.
Paris milling wheat is firmer while London feed wheat is softer. Canola at the ICE is lower while Paris rapeseed is firmer on the nearby and while outer months are also firmer the strength is definitely in the nearby contracts for oilseeds.
In India increased supplies of some pulse crops has seen demand for imports decrease and prices for some pulses slip away while others are firming. Lentil prices seem to be hardest hit shedding close to $80 in the last week. Mung beans were also softer in India while washouts and lower production in Australia has seen our domestic prices increase.