The grain market is under the influence of reports on crops in the U.S. and Canada
statistics Canada reports that this year farmers planted Canalou and a record soybean area. For the first time acreage Canalou (22.8 million hectares) exceeded the area sown under wheat (22.3 million ha), although in the previous forecasts, they were estimated at 22.2 million hectares and 22.7 million ha, respectively. Such changes have caused a sharp growth of quotations of high-protein wheat in Chicago. The price of canola has not yet responded to the reports because of dry weather in Canada persists, despite slight precipitation.
today, the USDA publishes a quarterly report on grain stocks and the weekly report on the acreage.
it is Expected that the acreage under corn in the US is 90 million acres, is 4 million acres less than last year. Under soy will be allocated 90 million acres vs acres 83.43 million last year.
Despite the fact that the official report expect a slight change in acreage in comparison with the data for the 1st quarter, private estimates indicate a significant replacement of corn with soy beans, which can lead to higher prices for corn. But now the market depends more on weather conditions than that of USDA data.
- In good or excellent condition in the US is 67% of the corn crops, which corresponds to the level of the previous week, but 8% less than 2016.
- the Condition of the soybean crop is slightly worse than last year. In good or excellent condition are 66% of crops compared with 67% a week ago and 72% in the same period last year.
From the report on grain stocks investors, significant changes are not expected.