The Morning News Round

Posted by Nogger - a legend in his own mind at 10:08 | Categorized as

30/07/13 -- The overnight market sees beans and meal mixed, corn around 3-4 cents higher and wheat up 5-7 cents.

Supporting wheat is news that Japan has rescinded it's ban on importing US western white wheat, which has been in place for two months now following the Oregon GMO scare. They say that they've finalised a GMO testing protocol and will obviously now be monitoring US shipments for traces of the same.

Japan have issued their normal Tuesday tender today, looking for 178 TMT of US, Canadian and Australian wheat, the tender also includes almost 90 TMT of US western white wheat.

Other supportive news for wheat this morning includes China's CNGOIC saying that the country has bought 1.5 MMT of Australian wheat in the past six weeks. Reuters have fine tuned the estimated 10-20% of the Chinese winter wheat crop downgraded as being only suitable for feed usage to a more precise 16%.

China's Statistics Bureau estimate this year's winter wheat crop at 115.7 MMT, and 16% of that equals to 18.5 MMT.

Egypt are back in the market tendering for wheat, their fourth tender this month after doing nothing in the Mar-June period. The results should be known later today.

Taiwan have bought 97,200 MT of US wheat overnight.

The EU Commission have raised their forecast for EU soft wheat production from the 128.9 MMT predicted last month to 131.7 MMT. They've also increased their barley estimate from 58.3 MMT to 59.4 MMT and upped their corn number from 69.7 MMT to 70.9 MMT.

The Ukraine State Weather Centre say that the country will produce at least 25 MMT of corn this year versus 20.9 MMT in 2012. Yields are seen rising 8.6% to 5.2 MT/ha, although that's well short of the 2011 record of 6.44 MT/ha. A sharp increase in planted area, up 13.6% from 4.4 million ha to 5.0 million ha is also behind the increase.

As the US winter wheat harvest enters the final lap with 19% of the crop left to be cut, sprouting following heavy rains earlier in the month is said to be a fairly big issue this year.

Oil World have increased their EU rapeseed production estimate from 20.4 MMT to 20.5 MMT, up 5.7% on the 19.4 MMT produced last year. They have the German crop at 5.8 MMT, with France at 5.0 MMT and the UK at 2.0 MMT.