There are still four months to go until the US soybean harvest is well underway. With a significant time remaining in the 2020/21 US soybean season, the very tight stock situation remains an important factor underpinning markets, said Peter Collier, senior market advisor, CRM Agri.
It is also still very early in the soybean growing season, and the majority of soybeans have only recently emerged. Large areas of key production states have been exceptionally dry at the start of the growing season, raising concerns for next seasons supply and maintaining a strong market risk premium into next season.
In terms of the European and Black Sea rapeseed markets, he sees that yield confidence has been increasing. Ukraine had been more concerning in the spring, as above average yields had been required to offset a reduced area, but following favorable spring conditions, a year on year recovery in production is now expected
Corn markets are almost entirely being driven by the prospects for US corn, while confidence is continuing to increase in global wheat markets, said Collier.
What additional factors should feed makers bear in mind when it comes to current agri-commodity trends? Tune in to get the fuller picture.