The continued positive outlook for US crops led US markets to give up some of the recent gains recorded, reported the analysts.
US maize is now 97% planted and 89% emerged, both ahead of average. The condition of maize has also improved, with 75% of the crop in good or excellent conditions.
Soybean planting has also continued at an above average pace, with 86% now panted, 7 percentage points higher than average with 67% emerged. The condition of emerged crops is also lending support to good yield prospects, with 72% in good or excellent conditions.
China buying US soybeans
China has reportedly purchased a further 120KT of US soybeans for December shipment according to Reuters. Continued purchases of US soybeans have lent support to US soybeans futures.
Decreases in French animal feed wheat demand have been insufficient to outweigh upwardly revised French export forecasts for 2019/20, reported CRM. End season French wheat stock estimates by FranceAgriMer have tightened to 2.8MT, down from 2.9MT the previous month, further trimming availability for 2020/21, it noted.
Although the hot conditions in Russian linger, in the latest Egyptian GASC purchase for July Shipment, two 60K vessels of Russian wheat were booked at $226.90/T and $227.59/T CIF. With current dry weather concerns, offers are up just over $7/T from the previous tender, said CRM.
Australian wheat, barley, canola outlook
Meanwhile, the Australia Bureau of Agricultural Resource Economics and Science (ABARES) has increased its production estimates for 2020/21 as rainfall has brought relief, with the June wheat production outlook increasing to 26.7MT, a 25% increase from the month-earlier, said those UK analysts.
Australian barley production is forecast to increase by 17% year on year to 10.6MT, 16% above the 10-year average. Canola production in Australia is forecast to increase by 40% year on year to 3.2MT.