Futures Close Report: 1st June 2017

FranceAgriMer estimated that 75% of soft wheat was in good or excellent condition a slight decline in condition compared with 76% a week earlier. Much is also being said of dry conditions in Spain which is thought to have dented barley yields, this could in turn see higher feed demand for imports into Spain for animal feed during the forthcoming season.

The government of Argentina has put temporary inspection measures in place at grain ports to ensure that the flow of exports is unhindered whilst the phytosanitary inspectors are on strike.

Brazil’s Agriculture Ministry expects the country’s soybean planting area to grow again in the next season, despite low prices and a global supply glut, as production is set to start in new areas. The soybean planting area should grow between 2% and 3% in the next crop cycle.  Soy planting in Brazil covered an area of 33.8 million hectares in the 2016/2017 season, up 1.8% from the prior period, according to data from food supply and statistics agency Conab.