The recent USDA WASDE report continues to weigh on markets, with nervous traders selling stocks on the back of strong US maize production and ending stocks. Nov-26 UK feed wheat futures have fallen further to £203.50/t
However, a bearish market has been a little underpinned by the ongoing tensions in the Black Sea with further shipping and infrastructure attacks.
Despite the bullish USDA maize forecast, US harvest progress is behind the five-year average and wet weather could see further delays. European maize production might also be lower than some forecasts.
Oilseeds outlook
Uncertainty has also impacted the oilseeds complex, Paris Nov 26 oilseed futures falling to below €500.00/t.
Again, the USDA WADSE report weighed on markets with an increased estimate for US soya bean production.
But grain merchant Frontier suggests uncertainty over crude oil direction is also weighing on markets. Conflicting headlines surrounding ongoing strikes and comments regarding potential talks with Iran have continued to create uncertainty, while Ukrainian attacks on energy infrastructure have added further concerns. Although oil flows remain operational. Crude exports have risen significantly since August, but refinery runs have remained flat amid disruption in Ukraine. Technically, the market has failed to establish a fresh high, suggesting upside momentum is weakening for now.
