Futures Close Report: 7th June 2017

Hot and dry weather in the northern U.S. Plains and northern Midwest is expected over the weekend, potentially damaging crops, which in turn is supporting US markets at the tail end of the week.  US Funds have been at historic short positions and are seen covering some of this, in order to mitigate their risk.

Imports of soybeans to China, the world’s largest buyer of the oilseed, rose in May by 25 percent from a year ago to the highest on record as a backlog of previously purchased supplies landed in the country according to the latest customs figures.  China imported 9.59 million tonnes of soybeans last month, up from 7.66 million tonnes a year ago and 19.6 percent higher than the 8.02 million tonnes brought in during April, although the increase was in line with market expectations.  Chinese crush margins are still reportedly low with traders still seeking to delay cargos.

Domestic wheat remains somewhat rangebound on old crop with low levels of interest. Crops across the UK by and large look good to date, but yield is still a long way from fully established hence forward risk remains.

USDA latest S&D report will be released on Friday pm (5pm BST).