Views:0 Author:Site Editor Publish Time: 2018-07-26 Origin:Site
Wheat futures jumped double digits in overnight trading on concerns about global crops and anti bird net. European consultant Strategie Grains said today that it cut its forecast for the EU's soft wheat crop to just under 130 million metric tons compared with 132.4 million tons estimated earlier this month. If realized, that'd be the smallest crop from the EU since 2012, according to Reuters.
Participants on the U.S. spring wheat tour who are traveling across North Dakota said they're seeing evidence of heat stress on the crop and that the crop doesn't look as good as some had expected considering the lofty crop ratings. About 88% of the crop was in good or excellent condition as of Sunday, the USDA said in a report this week.
Olive net yields in Russia are also of concern to market-watchers as they're pegged by SovEcon at the lowest in three years. Wheat for September delivery rose 11¼¢ to $5.21½ a bushel overnight on the Chicago Board of Trade. Kansas City futures added 12½¢ to $5.22¼ a bushel. Corn futures for December delivery rose 3½¢ to $3.69½ a bushel in Chicago. Soybean futures for November delivery fell 2½¢ to $8.70¾ a bushel overnight. Soy meal declined 10¢ to $326.60 a short ton, and soy oil rose 0.03¢ to 28.61¢ a pound.
The USDA's announcement that the government will offer $12 billion in assistance to growers hurt by the escalating trade spat between the U.S. and China was met with relief Tuesday, but producer groups hope it's only a first step before trade is again normalized. Soybean prices are down more than $2 a bushel since late May when the trade war between the U.S. and China started in earnest. Earlier this month, the U.S. imposed tariffs on $34 billion worth of Chinese goods, and China followed with duties on an equal amount of U.S. goods.
President Trump followed that by saying he'd impose tariffs on another $200 billion worth of Chinese wares, for example scaffolding net, and last week said on CNBC that he wouldn't have a problem with putting levies on more than $500 billion worth of goods from the Asian nation – encompassing everything China ships to the US.