Market Comment
Last week brought weather induced buoyancy to all grain markets with
dryness across Europe and very wet conditions in the US sending values
soaring. Parts of the US grain belt got 6 inches of rain on Thursday night
last putting newly planted soya bean plants under water. Meanwhile
Missouri and Kansas still have 8.5 million acres to plant. This helped
November soya bean values to gain 5% on the week while July meal was
up by 5.6%. In the cereal world, forecasters have been revising production
forecasts downwards with Coceral pitching the EU cereal harvest 5.2%
below the 2014 level. UK wheat production is expected to be 9.4% below
last year. Hot and dry conditions continue to be forecast for the coming
weeks with temperatures 10 degrees above average in store for parts of
Europe. The scale of the weather effect is illustrated by the recent
downgrade in Spanish wheat production forecasts where a 14% reduction
compared with last year is on the cards. In May the forecast was for a crop
31% above 2014! LIFFE July wheat closed the week up 3.8% while
November gained 5.1%. The MATIF September contract gained 8.8% while
CBOT July wheat rose by 15% on the week. MATIF corn rose by 2.5%. On
top of all this Canada is said to be very dry and China has had late rains
that is damaging wheat quality. Export demand for wheat into China is expected
to double in 2015-16. It’s a weather driven market at present and
while the world still appears to have ample grain, the markets are nervous
and volatility is the norm.

Wheat Distillers Pellets 6mm
DM 92%, Protein 31%, ME 12.6MJ/kg, Oil B 6.5%, Fibre 7.5% –all fresh wt
I am offering June-Sept ex New Ross.

Mike Shields
Commercial Manager







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