| This week is all about the weather once more as heat returns for the US and into Canada. Crude oil markets have fallen today due to a range of factors including Opec deciding to increase production while Delta covid cases cause demand concerns. The falling crude market has pressured vegetable oil and the wider oilseed complex. Managed money continued to reduce the number of long positions held in Chicago wheat, corn and soybeans last week. There is an expectation that the USDA will increase or maintain the crop conditions for corn later on today following what has been favourable conditions. However, forecasts for the US this week are a return of warmer weather and limited rainfall. Although initial yields were disappointing, the wheat harvest in Russia has continued at pace, covering 6Mha, with 20.7Mt harvested with an increasing average yield of 3.49t/ha according to the Ministry of Agriculture of the Russian Federation. What does this mean? Global markets are still in a weather market with spring wheat prospects worsening and the US corn and soybean crop still relatively early on in development. |
