Wednesday’s USDA report was the focus of the market this week. Both soyabean and wheat were forecast up, but less than the market was expecting. Soyabean acres are forecast at 87.6 million, and corn acres at 91.44 million. The soyabean area is particularly concerning because even with no weather problems and above average yields, the stocks of soyabeans are likely to reduce year on year.
Both soyabean and corn markets reacted by trading limit up and further gains are evident today on the new crop positions.
May 21 Matif rapeseed prices moved from 499 euros before the USDA report to close at 514.00 euros on Wednesday only to give back all the gains and trade again below 500 euros on Thursday.
New crop rapeseed prices performed somewhat better only giving back less than half the gains made on Wednesday. With little old crop rapeseed left to trade, the focus is now on new crop. The EU and UK will again require major imports and be reliant on Ukrainian, Canadian and Australian supplies. If Ukrainian supplies are delayed, it will be an interesting harvest dynamic with little carry over stock meaning new crop supplies will be in demand.
Harvest prices are in a range of £360 to £370 ex farm so with a typical bonus a return of £400 per tonne is close in most instances.
Oats remain thinly traded with buyers reluctant to show their hand. If world oat plantings reduce, as other more profitable crops take their place, there should be room for prices to rise.
Old crop beans remain plentiful with few buyers. We expect prices to drift into harvest. A potentially large crop may prove difficult to market as Australian and Baltic human consumption beans are likely to fulfil immediate Egyptian demand.
HOLL and HEAR HARVEST 2022 CONTRACTS ARE AVAILABLE
We have a wide range of environmental seed for Countryside Stewardship Schemes available from Hubbards Seeds. Please call your local United Oilseeds Area Manager or Tel: 01380 729200.