The markets were showing a rise and signs of positivity this week.
Progress on a trade deal between the US and China seems to be impacting on markets across the board and as a result this rise may be temporary.
Grain moving out of storage in the US is something that would help to move markets.
Some news from around the world
Western Australia’s grain production plummets
Western Australia’s wheat crop looks set to decline by a dramatic 4.3 million tonnes. Reports are that after producing a massive 9.3 million tonnes last year, this season’s crop will only reach 5.3 million tonnes.
In total, Western Australia’s grain harvest has been estimated at 11.2 million tonnes, down from 17.9 million tonnes last year. According to reports, the harvest is already complete in the region, although it typically wraps up at the end of December.
However, where fires rage on the east coast of the country some farmers have had two and three years with no production due to drought.
Australia has traditionally accounted for well over 10% of the world’s wheat trade. Asia and the Middle East being the country’s main export markets. However, in May of this year the country imported foreign grain for the first time since 2007.
Last crop progress report of the year
The United States Department of Agriculture (USDA) released its last crop progress report of the year on December 9 and the next release will not be until early April 2020.
As of December 8, 92% of the corn in the 18 main corn producing states had been harvested. The five-year average shows that the corn harvest would usually be complete by now. Progress is lowest in states which were hit by severe weather.
For example, just 43% had been harvested in North Dakota which saw heavy snow in October and continues to battle with the weather. 73% of the harvest is complete in Wisconsin and Michigan, which were also hit by heavy precipitation.
In other news, 73% of sunflowers and 89% of cotton had been harvested in the US by December 8.