CBOT wheat futures went down and corn futures strengthened on February 14. Soybean futures continued to grow. Technical factors and weather were main supporters.
February’s USDA report presented revised estimates for Ukrainian grain production and exports in the 2017/18 season. In particular, the wheat production forecast for Ukraine was raised by almost 500 KMT to 26.981 MMT.
Romanian rapeseed exports set a record last season, when they totaled 1400 KMT according to official data. The nation managed to achieve this not only owing to crop shortfalls in France and Poland, which are the top suppliers in the EU domestic market. Decreased competition from Ukraine, where total rapeseed production also declined, made it possible for Romania to expand its share in EU markets.
Córdoba consultant Pablo Adreani, the owner of Agripac, has updated his estimate for Argentina’s soybean production and revised it from 57 million metric tons to 47 million metric tons due to the recent drought. For corn, the estimate was lowered from 40 million metric tons to 35 million metric tons.
Along with a rise in wheat shipments, Ukraine continues stepping up exports of wheat bran despite a drop in its output in the country. In 2017, wheat bran production in Ukraine fell by almost 5% to 626.6 KMT.
According to the State Fiscal Service of Ukraine, Ukrainian agricultural companies imported more than 66 KMT of seeds of staple cereal and oil crops in 2017 or 7% more than a year ago, reports UkrAgroConsult
In particular, 12.5 MMT of wheat were exported (including milling wheat - more than 6.8 MMT, feed wheat - more than 5.6 MMT), barley - 3.9 MMT, corn - 8.3 MMT.
The rising of grain prices in the world market affected Ukrainian wheat as well. Ukrainian wheat prices continued growing last week in the export and domestic markets.
Surging U.S. corn exports should gain even more pace, supported by a weakening dollar and dry weather in Argentina and South Africa.
U.S. soybean growers are losing market share in the all-important market because the race to grow higher-yielding crops has robbed their most prized nutrient: protein.
CBOT wheat and corn futures strengthened on January 24. Soybean futures closed the session up supported by fundamental factors.
On Wednesday, January 17th, the EU law makers approved a plan for reforming the energy market in order to reduce energy consumption and prevent climate change.