CHINA MAY INCREASE GRAIN IMPORTS DUE TO DROUGHT
Drought is expected to drop China’s wheat and corn output, which could lead to increased imports from the nation that hasn’t made major purchases recently due to oversupply and declining consumption. Wheat production in the marketing year that ends June 2025 is forecast to drop 1.24% to 134 million tonnes while corn is expected to fall 2.26% to 282 million tonnes in the year through October 2025, BOABC said. High temperatures and less rainfall have caused drought in a major grains production area in northern China and impacted planting of summer grains, according to the agriculture ministry. Drought conditions could worsen with high temperatures continuing in the next 10 days in major wheat and corn producing areas.
(Link: WorldGrain)
CEREALS TT JUNE 17, 2024: PRICES OF WHEAT, CORN AND SOYBEANS DECREASE
On the CBOT exchange, wheat prices fell nearly 2% to the lowest level in more than 6 weeks, as pressure from the rapid increase in winter harvests in the US and other exporters in the northern hemisphere reduced prices. Corn and soybean prices also fell, focusing on weather in the US Midwest. The most traded wheat contract on CBOT fell 1.8% to 6.01-3/4 bushels. Corn prices fell 0.6% to 4.47-1/4 bushel and soybean prices fell 0.7% to 11.71-1/4 bushel. In the Black Sea region, rain in dry regions of Russia and Ukraine brought some support to corn, although the benefits may be limited for wheat as harvest approaches. USDA cut wheat output estimates for Russia and top exporter Ukraine this week after drought and frost.
Soft wheat harvest conditions in France stabilized last week, but harvest prospects here remain poor after a wet growing season. Conditions in U.S. Crop Watch corn fields are below average so far, Reuters analyst Karen Braun said. Crop conditions remained good in Indiana and Ohio, but fell sharply this week in southeastern Illinois after a second week without rain. Conditions in all three locations could decline next week as the heat will be accompanied by little or no rain.
(Link: Vina.Net)
