• EU grain markets were in ‘catch-up’ mode today after the Easter Bank holiday weekend.
  • Both LIFFE and Euronext wheat closed lower as the US winter wheat conditions improve with 54% of the crop rated ‘GD/EX’ (vs 53% LW and 57% LY) and as the US Dollar was losing ground vs the Serling and the euro.
  • CBOT wheat was set to finish lower for a fourth consecutive session and hit its lowest in nearly 3 weeks. However, Minneapolis was trading higher with US spring wheat 13% planted, 8% behind the 5-yr average.
  • US corn plantings are 6% complete (+3% wow), below market expectations and compared to 12% last year and the 5-yr average of 9%. Delays are likely to continue due to new storms passing across the US.
  • According to the Ukrainian AgMinistry, the country’s spring grains plantings are 94% complete.
  • The most recent weather forecast models continue to favour dry conditions at least until next week for Western Europe whilst temperatures are about to drop well below normal but with no damaging impact.

May-17 Euronext wheat options contract expired today.


  • In the wake of a drop in palm oil and soybean prices, Euronext rapeseed edged lower across the board. With the strong rally in the pound, the front month Euronext OSR contract in £ terms dropped to its lowest since early October.
  • According to the Chinese National Bureau of Statistics, Chinese farmers intend to increase their soybean plantings by more than 8% at the expense of corn as the country attempts to reduce its huge 250MlnT corn stockpile.
  • Canadian farmers are likely to increase their acreage of canola and soybean due to depressed wheat prices. Stats Canada will release its ‘Principal field crop areas’ report on Friday.
  • The Argentine soybean harvest should make rapid progress in the next 2 weeks thanks to dry weather conditions.
  • Malaysian palm oil prices continued lower on ideas of production and stocks recovery.

Of interest

  • The Sterling jumped as much as 2.4% against the US Dollar after British Prime Minister Theresa May called for a surprising early election in June in order to strengthen hand on Brexit.
  • The Pound traded above the $1.29 level for the first time in more than 6 months. As a result, the FTSE dropped the most since the aftermath of the Brexit vote.
  • The IMF has raised its 2017 global economic growth forecast to 3.5%.

Chart of the Day#1: US Winter Wheat ratings

Chart of the Day#2: 15-Day EU Forecast Precipitation

Futures & Options prices