What a difference a week makes, with the recent warm and wet weather has farmer sentiment changed on crop size and quantity?
The arrival of rain offers a reassuring factor as FranceAgriMer published lower crop ratings on Friday. Soft wheat crops are in "good to excellent" condition at 79% compared to 81% the previous week. A slight drop was also noted in winter barley with 76% of crops in "good to excellent" condition.
With the short to mid term forecast temperatures are rising towards seasonal average this along with the nitrogen uptake will increase crop yield potential.
The US corn market in Chicago ended the week on a new high above 7.70 $/bushel on the May 2021’s delivery and 7.30 $/bushel on the July 2021. New exceptional sales of corn have been announced, including 1.36 Mt of the new crop toward China. The funds’ activity remains buoyant and these actors are still strongly bullish on the cereal. This Wednesday, the USDA report could provoke some positions’ readjustments or profit takings.
The firmness is also in place on the soybean. In Chicago, current market tensions have pushed soybean prices to the highest level seen since the 2012’s summer. The soy oil and meals are also progressing to new campaign highs.