Source :Barclays weekly update
1 September, 2012
“We view our current price forecast for all three markets – corn, wheat and soybeans – with an upside bias.” the bank said in a report.
LONDON(Commodity Online): Barcalys remains positive on grain prices given tightening market balances, especially in the case of soybeans with no evidence of demand rationing at record-high prices.
“We view our current price forecast for all three markets – corn, wheat and soybeans – with an upside bias.” the bank said in a report.
Agricultural markets exhibited broad-based strength this week. Soybean rose strongly, with front-month prices setting an all-time high at $17.81/bushel, and the new crop November contract rising to a contract high at $17.71/bushel.
Corn and wheat prices are also firmer, but posted more modest gains in comparison. Corn and soybeans remain underpinned by supply losses caused by the US drought with this week’s USDA crop ratings showing a 1% decline in good/excellent ratings and a 1% increase in the poor/very poor ratings for both markets.
Weekly USDA export sales continued to be strong for soybeans, mildly positive for wheat and subdued for corn while the latest EIA data showed weekly US ethanol output averaged 819Kbpd, down 4Kbpd from the previous week.
Wheat prices gained support from the continued lowering of Russia’s wheat crop estimates, with SovEcon scaling back its estimate by another million tonnes to 38mn tonnes (the August WASDE report pegged the crop at 43mn tonnes), raising concerns of possible export curbs.
However, on 31 August following a meeting of the Russian government’s food security commission, the country’s Deputy Prime Minster said there were no plans to limit grain exports. This is despite the government downgrading its own estimate of grain production.
1 September, 2012
“We view our current price forecast for all three markets – corn, wheat and soybeans – with an upside bias.” the bank said in a report.
LONDON(Commodity Online): Barcalys remains positive on grain prices given tightening market balances, especially in the case of soybeans with no evidence of demand rationing at record-high prices.
“We view our current price forecast for all three markets – corn, wheat and soybeans – with an upside bias.” the bank said in a report.
Agricultural markets exhibited broad-based strength this week. Soybean rose strongly, with front-month prices setting an all-time high at $17.81/bushel, and the new crop November contract rising to a contract high at $17.71/bushel.
Corn and wheat prices are also firmer, but posted more modest gains in comparison. Corn and soybeans remain underpinned by supply losses caused by the US drought with this week’s USDA crop ratings showing a 1% decline in good/excellent ratings and a 1% increase in the poor/very poor ratings for both markets.
Weekly USDA export sales continued to be strong for soybeans, mildly positive for wheat and subdued for corn while the latest EIA data showed weekly US ethanol output averaged 819Kbpd, down 4Kbpd from the previous week.
Wheat prices gained support from the continued lowering of Russia’s wheat crop estimates, with SovEcon scaling back its estimate by another million tonnes to 38mn tonnes (the August WASDE report pegged the crop at 43mn tonnes), raising concerns of possible export curbs.
However, on 31 August following a meeting of the Russian government’s food security commission, the country’s Deputy Prime Minster said there were no plans to limit grain exports. This is despite the government downgrading its own estimate of grain production.
No comments:
Post a Comment