The key market driver this week has been the ongoing dry weather in South America which has provided support for both soybean and maize prices, and therefore also lifting wheat prices higher.
With forecasts only containing minimal rainfall in the near future across Argentina, Brazil and key wheat areas in the US, we have seen a bullish direction in the market for most commodities as we move towards the end of 2021.
China have bought both French wheat and Barley, following the initial fall in prices last week. The Omicron Variant is likely to cause uncertainty regarding global demand for Wheat in the coming weeks.
Russia is considering limiting wheat exports to 8MT from February – June, 1MT less than previously planned.
The dry weather in South America will be a key watchpoint for the soybean market. The dry weather in the coming weeks/months will present big challenges for soybean production in Brazil and Argentina. South America are on course to produce a record crop this season but the persistent dryness will most certainly have a negative impact on numbers.
China have reportedly imported 3.63MT of US soybeans in November and 3.75MT of Brazilian soybean for the same month, supporting soybean prices.
In the past 48 hours we have seen extremely high prices for soya for the upcoming summer and next winter with delivered onto farm prices in excess of
+£400 per tonne.
For maize, the South American harvests are critical for global supply in the rest of 2021/2022. If record crops are realised, expect pressure on prices but this all depends on the weather and currently the market remains nervous.
From all of us here at Harpers Feeds, we hope you all enjoy the festive period!