Futures Close Report 9th July

USDA Crop condition

• Soybeans reported 71% good excellent slightly above market expectations;
• Corn reported 75% good excellent in line with market expectations;
• US spring wheat reported 80% good / excellent well in excess of analyst forecasts.

The difference or “spread” between the Brazil and US soybean  prices has moved to a 5 year high. Owing to expectations that China’s imposition of the extra 25 percent tariff on U.S. soybeans will shift more sales to Brazil, the world’s top exporter

Russia has harvested 15.3 million tonnes of grain so far with average yields down year-on-year from 9 percent of the area. The harvesting started earlier than last year due to dry weather in several regions.

China’s 2018 wheat output will fall 5.6 percent from the year before to 122.5 million tonnes,  according China National Grain and Oilseeds Centre revising its forecast down from the prior month’s 126.7 million tonnes. China’s wheat crop has been hit by bad weather, reducing output.