Gleadell Market Update
FEED WHEAT
ABARE raised its estimate of the Australian 2010 wheat crop to 22.14mln/t. While Strategie Grains raises its 2010 EU-27 soft wheat production forecast to 133.1mln/t, but lowered barley and maize estimates, reporting that dry spring weather had cost the EU 2mln/t in grain output, says David Sheppard, managing director, Gleadell Agriculture.
Coceral trimmed 2010 EU soft wheat crop to 132.2mln/t, down from 133.5mln/t in their March forecast. With smaller estimates for Spain, Denmark and Austria partially offset by upward revisions for Germany and the UK.
Argentine Agriculture Ministry raised its area forecast for the 2010/11 wheat crop to 4.4 million hectares.
Saudi Arabian purchased nearly 1mln/t of wheat of Canadian and German origins for 2010/11 season, European traders reported that the spilt was 880,000 tonnes from Germany and 110,000 tonnes from Canada.
Statcan estimated Canadian all-wheat plantings at 22.72 million acres, down 7% from last year. However, due to recent weather concerns, the trade and analysts believe these estimates are overstated, especially with the CWBs forecast of the smallest all-wheat plantings in 39 years at 19.15 million acres.
The week has been dominated by the higher quality wheat market, with the woes in Canada and the purchase by Saudi Arabia. While these are supportive to the quality market and the MGE complex, it is worth noting there appears to be no shortage of feed grains across the globe. The potential of higher than expected US corn plantings, increased harvest activity in the US and southern EU, and favourable weather prospects for Australia, Argentina and US, spring crops will just increase the availability and pressure prices lower to attract buying interest, Mr Sheppard adds.
OILSEED RAPE
For further information contact David Sheppard, managing director, on 01427 421222 david.sheppard@gleadell.co.uk
Jonathan Lane, trading manager, on 01427 421222 or email jonathan.lane@gleadell.co.uk