World Grain Production up from January (3)
With market attention focused on generally bearish fundamentals, weakness in non-grain markets and concerns about prospects for the world economy, the IGC GOI slumped by 3 percent since the last GMR, to its lowest in more than seven years. Against a backdrop of ample exportable surpluses, current low ocean freight rates and with mostly favorable early prospects for 2016—2017 northern hemisphere winter crops, buying interest remained light, with some importers waiting for a further downturn in prices.
Losses in soybean values were particularly pronounced, as harvesting gathered pace in Brazil, and with recent beneficial weather bolstering expectations for huge crops across South America. Average wheat, barley and maize quotations were also lower, while comparatively small changes were seen in rice prices.
The IGC GOI wheat sub-index dropped by a net 2 percent month-on-month. Pressure stemmed from comfortable world supplies and worries about slack importer demand, including a slowdown in sales to Egypt.
The maize GOI sub-index showed a small decline in average maize export prices since the last report. Weakness was mainly tied to losses in the U.S., where quotations turned more competitive, dropping by around 6 percent. In contrast dollar-denominated prices in the Black Sea region were firmer.
World soybean markets softened over the past month, the IGC GOI sub-index dropping by 5 percent, as the harvesting of expected bumper outturns in South America weighed on sentiment. However, U.S. market losses were capped by renewed old crop demand and currency movements, while loading delays provided some support to free on board values in Brazil.(Finished)
From: High Plains Journa