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July 26, 2018

Up Corn, Down Horn!

Cereals
  • The old saying ‘up corn, down horn’ continues to play out with grain prices remaining well supported and meat values coming under further pressure.
  • Livestock producers are under increasing pressure from higher feed prices and less available forage with cattle being slaughtered earlier than usual as result.
  • Feed compounders continue to take cover helping prices of wheat back to levels not seen since 2013.
  • Wheat prices took a breather today following five successive days of strong daily gains.
  • An independent crop tour in Canada estimates a slight increase in both wheat and canola yields.
  • IGC cuts its World wheat forecast by 16MT to 721MMT, this would be the lowest since 2013/14.
  • France’s wheat growers association AGPB sees French wheat production falling to 35MT, below last years 36.6MT.

Oilseeds

  • Rapeseed prices continued to move higher following higher veg oil and soybean prices.
  • Soybean values were supported as President Trump announced that the EU had agreed to import more US soybeans.
  • Chinese demand for US soybeans continues to look uncertain amidst the Trade War between the US and China.