Market Morsel
In one report today, I went over the wheat conditions in the United States (see here). Nevertheless, they aren’t the only gamer in the area. There are still the French to think about, and they are polar revers to their Kansas cousins.
The chart listed below programs the French wheat conditions for the present week, compared to the very same durations because 2012. These conditions are the portion that is bonnes/tres bonnes or for us English speakers good/very excellent.
The wheat crop is presently 93% good/very excellent, the greatest because 2015. It is very important to keep in mind that conditions can alter rapidly. The 2nd chart reveals in 2015’s season, which fell from this time of year from 82% to 63% good/excellent. This year, nevertheless, appears to look a lot more most likely to carry out than last.
We are presently seeing Matif wheat futures are up to a traditionally high discount rate to Kansas futures, as conditions in the French appearance parfait versus bad in Kansas.
The intensity of the conditions in the United States can be seen by the reality that United States purchasers have actually acquired 210kmt of wheat from Europe for delivery to the U.S.A. over the next number of months.