Futures Close Report: 13th Sept 2017

FranceAgrimer’s first look at a supply / demand figures for 17/18 season put French non EU Soft Wheat exports at 10.2 million tonnes  – up some 5 million tonnes from the previous year, but still lower than the previous 3 seasons.  FranceAgriMer’s forecast is below trade expectations of at least 8 million tonnes as operators expect France will be able to take some markets usually supplied by Germany and the Baltic states, which harvested a poor-quality crop this year.  End stocks were forecast at 3.4 million tonnes up from 2.9 million tonnes last season.   For maize, FranceAgriMer pegged ending stocks this season at 2.5 million tonnes, up from 1.95 million last season, mainly due to a larger crop.

China released news of its plan to roll out Ethanol blending in fuel on a national basis by 2020 – this could see massive investment in biofuels in order for China to find a way to utilise its 200 million tonne stockpile of Corn. A formal policy has yet to be released but could be modelled on a minimum blending target similar to that in the USA – which has seen rapid expansion in the biofuels sector.