Both old and new crop feed wheat values are again unchanged this week as buyers continue to hold off on their commitments until this month’s all important referendum is finally out of the way.
As reported by Agrimoney.com this week, the International Grain Council (IGC) have recently advised that world cereal stocks will hit a new all-time high of 474 million tonnes by the end of the 2016-2017 trading season.
This is because global cereal production is to rise to the second highest level on record next season and although consumption is expected to rise alongside this, huge carryover stocks from the current 2015-2016 trading season are set to imbalance next season’s supply and demand scales.
However, whilst overall cereal stocks are set to increase, the supply and demand balance for maize corn looks far healthier than the supply and demand balance for wheat.
The IGC added that “whilst overall global wheat production will fall 2% short of the current season production record, wheat prospects are excellent for Europe, the US and Russia.
“The world wheat market will be in surplus yet again next season”.
Post the arrival of the above report from the IGC, a series of locally severe thunderstorms and heavy rain is now forecast across major US winter wheat growing regions this week. 62% of the total US wheat crop is said to be in either a ‘good or excellent’ condition’ (this time last year just 45% was rated in this condition) and an estimated three quarters of the crop (according to local authorities there) is believed to have now achieved ear emergence, hence the concerns regarding the arrival of this incoming wet weather.
The news has given some slight support to the Chicago wheat market although we are yet to see any change to European wheat markets.
The new fertiliser season is almost upon us.
There is still plenty of quality Pulan 34.4 Ammonium nitrate available and when independently tray tested, it has provided spreading patterns comparable to the highest quality UK and Lithan products. Fertilizer spreader and vain position settings for Pulan are available for the top 7 fertiliser spreader machines.
At the moment, 46% granular Urea offers best unit value for nitrogen equating to approximately £140/T as an equivalent to ammonium nitrate unit for unit.
As always, please contact the office to discuss any of your new season requirements.