Wheat faces favorable conditions; Meal futures soften

Wheat conditions favorable but rapeseed faces weather challenges

Temperatures in China were 1-4C higher than average over the past week and rainfall was mostly limited to under 50mm in the southeast. 

In January, some areas saw unusually cold temperatures which damaged certain areas of winter wheat and rapeseed. The higher temperatures and good soil moisture have helped those damaged crops to recover. 

Temperatures should continue to rise over the next week, with weather forecasts estimating temperatures slightly above normal which should continue to be beneficial for winter wheat crop growth.

While winter wheat conditions are good, rapeseed will continue to face adverse weather conditions in southern China. Areas of the south are expected to get 80-150mm of precipitation over the next 10 days which could lead to waterlogging in some fields. 

Rapeseed in the south has already faced a difficult season with drought conditions in the autumn affecting plant growth. 

Livestock and feed prices update for 1st week February

Meal futures in China soften as Brazilian soybean premium falls

Chinese agricultural futures traded largely in a rangebound on Tuesday except for soybean meal and rapeseed meal futures that fell 1-2% across the board as cash premiums for soybeans in Brazil continued to fall, prompting more cargo buying demand from crushers in China.

CFR China premiums for Brazilian soybeans were heard retreating more than 10 cents per bushel last week and continued to slide this week.

Lower import costs stimulated cargo buying demand from China with 23-25 cargoes traded last week, according to traders and brokers.

This subsequently affected market sentiment in China as the short-term supply tightness is expected to ease.

Futures close