Futures Close Report: 29th June 2017

The European Commission has cut its forecast for cereal production in the European Union this year following recent high temperatures.  It reduced its outlook for common wheat usable production to around 139 million tonnes, from 141.3 million estimated a month earlier.

The International Grains Council reduced its forecast for 17/18 crop year:

• Global corn crop at 1.025 billion tonnes, down one million tonnes from last month’s estimate and well below the prior season’s 1.069 billion;
• Global wheat production at 735 million tonnes, down one million tonnes from last month and below the previous season’s 754 million;
• Global soybean production at 348 million tonnes, down slightly from 351 million in the prior season.

Canadian farmers planted a record area of canola and slightly less wheat than expected during the planting season, according to a Statistics Canada report on Thursday.   Farmers planted canola on 22.8 million acres, up 12% from last year and topping the average trade guess of 22.2 million acres.  All wheat planting seen on 22.4 million acres down 4% year on year.

All other market focus on USDA quarterly stocks due Friday pm.