The daily debate continues to rage on over where, when, and how rain will fall in the key growing areas of the US corn belt. The key period for yield determination is upon us and some grain merchants are trying to figure out what the final yield may be.
US corn production is important, because the global grain balance sheet is dependent upon an enormous amount of wheat and feed grains from Russia and the Black Sea area.
The ‘corridor’ agreement is set to expire in the next two weeks, so what happens with the US corn yield and Russian grain supply will largely determine the values of grain over the next few months.
Locally the markets continue to wait, with bated breath, for China’s decision on Australian barley imports.
It has been three months since the Chinese Government undertook reviewing the ‘ban’, and we should expect an announcement soon.
Most traders believe it is a done deal on barley, but canola will take more time.