Following yesterday’s initially bearish WASDE, markets have found some support today.
Hot weather continues to present a concern for Europe and central US states, although more encouraging forecasts see rainfall for the majority of the corn belt over the coming week.
New crop Chicago corn – Dec-23 managing to break back above $6/Bsh today with Chicago wheat in sympathy also managing a degree of recovery to push back near $8.50/Bsh.
Continental Paris milling wheat and UK feed wheat futures, however, recorded little movement today. The Euro continues to be under pressure having briefly fallen below parity today before a marginal bounce higher. The annual inflation rate in the US accelerated to 9.1% in June, the highest since November of 1981, up from 8.6% in May.
FranceAgriMer estimate that French soft wheat exports outside the EU are expected to reach a three-year high in 2022/23 after a strong start to the season, forecast shipments of 10.3Mt, would be the highest since 2019/20 due to the increased demand following the war in Ukraine.