Futures Close Report: 20th Sept 2017

Strong Chinese demand for US Soybeans reported from USDA daily export sales data.  U.S. exporters booked 1.212 million tonnes in soybean sales to top importer China and unknown destinations, the U.S. Department of Agriculture said on Wednesday.  The “unknown” element is also thought to be China.  U.S. soybean export sales for the 2017/18 marketing season were about 25% behind a year ago as of Sept. 7, according to USDA data.  The agency is forecasting a 3.7% increase in U.S. soybean exports this season.  Current U.S. prices offered free on board are around $10 per tonne cheaper than Brazil at this time.

Australian wheat prices have risen above offers being made for U.S. cargoes in Asia, a rare market situation that is expected to drive more purchases from North America.  The lowest Aus crop for 8 years following dry conditions is resulting in farmers holding back supplies as prices rise.

UK Markets remain quite slow – most merchants report fresh origination is lacking with Farmers being reluctant to sell,  thus premiums are starting to stretch as deficit areas of the country reach out to pull in supplies.