Futures Close Report 15th Feb 2018

Consultancy Strategie Grains on Thursday cut its forecast for the European Union’s soft wheat exports this season, citing poor competitiveness of French and Polish wheat on the world market.  EU projected exports in the current 2017/2018 (July/June) season seen at 21.4 million tonnes, down 300,000 tonnes from last month, and now 3.7 million below its July forecast.  EU exports stood at 24.1 million tonnes in 2016/17.   For the 2018/19 season, Strategie Grains cut its estimate for EU wheat exports to 24.1 million tonnes from 24.4 million last month, still well above the current season, with Germany, Poland and France benefiting most from the rise.

US soybean market on the verge of its biggest weekly gain in 7 months as markets rally on continued dry conditions in Arg combined with fund short covering.

US soybean crush continues at a brisk pace.  NOPA members processed 163.111 million bushels of soybeans last month, down from a record 166.305 million bushels the previous month but up from the 160.621 million bushels crushed in January 2017.  However, despite the January figure being the highest ever total for the month – it actually fell short on analysts estimates.