Wheat markets turned bullish in this afternoon’s trading on continued worries about French harvest quality combined with shipping issues at France’s largest grain export port, Rouen (Reuters). Chicago wheat were trading strongly this afternoon, DEC-21 up $0.12 per bushel on yesterday’s close. Matif and London wheat were also on a bull run this afternoon, Matif DEC-21 up €5.75/t and London NOV-21 up £4.00/t on last trading price. With a tightening wheat supply currently being received out of Rouen, exporters have been forced to compete and reinforce quality checks to meet milling standards. Summer rain has led to weak readings for test weights and Hagberg falling numbers, where Algeria has strict requirements.
US crop conditions maintained to improved over the last week, as the USDA crop progress report eased concerns about the corn crop. US corn is now rated 64% good/excellent, up two percentage points on the week. Soybean conditions were unchanged at 60% rated good/excellent. Reports suggest that this week’s trade may be quiet and choppy ahead of Thursday’s USDA report.
Matif rapeseed futures also gained support from the bullish wheat markets, with Nov-21 last trading price up €4.25/t on yesterday’s close. The Indian government today announced plans to reduce the country’s reliance on vegetable oil imports with a $1.5bn investment to grow domestic edible oil output. Currently, India is the world’s largest vegetable oil importer.