Futures Close Report 1st May  2018

Brazil weather – dry conditions seen as stressful to the second (safrinha) corn crop –  any deterioration seen as causing shortfalls which could necessitate increased export demand for US crops – supportive to CBOT markets.

Australian farmers are planting wheat in some of the driest soils in years, following on from a severe drought that cut 2017/18 output in the world’s fourth-largest wheat exporter to the lowest in a decade.  The difficult conditions for a second successive season threaten another disappointing crop.  Farmers have a planting window up until the end of May to get crops in, and will be hoping that western Australia gets much needed rain in that time.  Western Australia, which accounts for more than 40% of the national wheat crop, received just 27% of its average rainfall over March and April, while soil moisture in eastern growing regions is already at five-year low.