Headlines:
- STRAT GRAINS CUTS EU WHEAT EXPORT FORECAST WELL BELOW OFFICIAL HOPES
Strategie Grains slashed hopes for EU wheat exports, as it downgraded ideas of wheat quality in the bloc. The Paris-based consultancy cut by 1.0m tonnes its forecast for 2016-17 EU wheat exports, to 23.7m tonnes, which would be down 8.0m tonnes year on year. The cut to exports was down to lower production, as well as low quality due the poor weather in France, the bloc’s top grower. EU wheat production was seen at 136.5m tonnes, down 1.4m tones from the previous estimate, at down 10% year on year. Strategie Grains’ forecast is well below other analyst estimates. The International Grain Council has EU wheat exports, excluding durum, at 25.2m tonnes. And the European Commission forecasts soft wheat exports at 25.0m tonnes. - SUGAR FUTURES RALLY, AS RAIN SLOWS BRAZILIAN CANE CUTTING
Sugar futures rallied, as data showed a late August decline in the pace of production in the country’s main Centre South cane belt, according to data from the cane industry body Unica. Output in the biggest cane growing region in the world was down 11% year-on-year over the second half of last month, as wet weather hampered harvesting. Mills in the region produced 2.54m tonnes of sugar in the period, down from 2.97m tonnes over the second half of July. This was an even sharper drop than markets were expecting, with a Platts survey of analysts forecasting production at 2.67m tonnes in the latest period.
Summary:
James Garfield was quoted for saying that, “he who controls the money supply of a nation controls the Nation. Henry Kissinger in later years would go on to state that he who controls food supply controls the people. The proposed merger of Bayer and Monsanto would create a new entity that controls 37% of the Corn seed market, 30% of the Soybean market and 31% of Crop protection/Traits. According to USDA figures the combined group would control 70% of the market cottonseed. Executive anticipate that the merger will pass regulatory approval by the end of 2017.
The markets reversed roles from yesterday. Corn and Wheat were lower on the day today, while Soybeans were able to make a push to the upside. Corn and Wheat were slightly weaker for most of the day but after the first hour of trading, Soybean futures turned higher when reports of dry weather in Brazil started circulating on newswire feeds. The Brazilian crop is quickly approaching its planting season and dry weather that started around the end of August may cause some planting delays. Some rain is forecasted for the latter part of September so the advance today could very well be premature.
November Beans gained 7.25 cents December Corn lost 2.50 cents and Wheat lost 4.25 cents. The last two days have been small ranging low volatility trading days for the markets. The Wheat looks like it is setting up for a decent decline especially if it closed below 395 tomorrow. Beans could enter a small consolidation for a couple of days before turning back down and Corn could remain a bit range bound.
