Ongoing geopolitical tensions and weather concerns have pushed grain markets higher. May-26 UK feed wheat futures have risen and now stand at £188.00/t, while the November contract sits at £187.60/t.
Reports from the US highlight the drought continuing in many areas. A volatile climate has brought rain to some areas but in some states, wheat conditions remain poor. In Oklahoma, just 12% of the winter wheat crop was rated as in good or excellent condition.
Despite a dry April for many areas, the AHDB reports that 75% of winter wheat crops are in good or excellent condition. This is down from March, but still higher than last April and April 2024.
Oilseeds outlook
Rapeseed also continues to benefit from the political tension. Although oil prices have come back down at the end of April, Brent Crude hit $122/barrel at the end of last month.
It is estimated that around 2,000 ships are stranded in the Strait of Hormuz. Some ships have left the area as part of Project Freedom but Iran has reportedly launched attacks on both commercial and military ships.
Iran’s Foreign Minister Abbas Araghchi has warned the US against being “dragged back into the quagmire,” which only racks up the tension further.
Paris Rapeseed Futures have risen further, with the Nov-26 contract at €529.50/t.
