Written Commentary
London Wheat Report
The U.S. Department of Agriculture on Monday rated 75% of the U.S. corn crop as good to excellent in its first condition ratings for the 2024 crop, above the average estimate of 70% in a Reuters analyst poll. Pre-report trade estimates from 13 analysts surveyed by Reuters ranged from 58% to 79% good to excellent. A year ago, 64% of the corn crop was ranked good to excellent. Corn was unchanged at the time of writing having been down 3 cents at its lowest.
The US wheat was heavily discounted today after the USDA announced US winter wheat was 6 percent complete which was far above the five year average of 3 percent and well above trade expectations. In its first 2024 condition ratings for spring wheat, the USDA rated 74% of the crop as good to excellent, up from the year-ago rating of 64%. The USDA rated 49% of the winter wheat crop as good to excellent, up one percentage point from the prior week while analysts on average had expected no change. Wheat futures were down for the fifth consecutive session.
European wheat markets were in the red today. Matif saw less of a sell off than London and closed slightly down across the curve. London traded down all day. Nov4 got as low as £215 before coming off the bottom in the afternoon but still closing over £2 down on yesterday’s settlement. Volume across the curve was around the 400 mark. Nov 5 traded today, all be it for 2 lots @ £206.
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