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MARKETS
SEPTEMBER 8, 2011 | WWW.PRODUCER.COM | THE WESTERN PRODUCER
EU WEATHER | CROP CONDITIONS
Rain dampens outlook in Germany Rapeseed suffers | Dry weather is needed or next year’s crop could be affected CWB DELIVERIES Contract calls for durum wheat were announced Aug. 30 for the 2011-12 crop year. The delivery calls apply to grain in straight, tough or damp condition. Stations must have completed taking deliveries on the following classes for the 2010-11 crop year before accepting deliveries against new contract calls.
DURUM WHEAT Series A
quantity 25% 25% 25% 25% 25% 25%
grades 1 CWAD 13.0% & higher 1 CWAD 12.9% & lower 2 CWAD 13.0% & higher 2 CWAD 12.9% & lower 3 CWAD 13.5 & higher 4 CWAD
trains 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4
HAMBURG, Germany (Reuters) — Rain in Germany may spoil an otherwise positive picture for European Union winter rapeseed seeding after bad weather significantly hurt this year’s crop. “It looks like the problem with German rain threatening EU rapeseed supplies will not end with this year’s terrible German rapeseed crop,” one trader said. “Unless the weather really dries up fast, smaller German sowings could also threaten the EU’s 2012 crop.” Rain is delaying seeding in Germany, normally the EU’s largest pro-
ducer of the crop. However, seeding is progressing well in number two producer France and number three producer Britain. Germany’s farm ministry has confirmed a major failure of the country’s 2011 rapeseed crop. The winter rapeseed harvest will fall 31.3 percent on the year to 3.9 million tonnes after crops were hammered by a cold winter, spring drought and summer rain. The ministry said Germany would need more imports in the coming year. Ukraine is expected to be a major
THE WINTER RAPESEED HARVEST MAY FALL
31.3 percent supplier to the EU in the coming year after exporting 90 percent of its 2010 rapeseed harvest. Major sales to Germany are likely. The Ukrainian farm ministry said farmers have completed the 2011 rapeseed crop, harvesting 1.4 million tonnes, which is little changed from 1.47 million tonnes in 2010. access=subscriber section=markets,none,none
WEATHER | LA NINA
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La Nina revival could affect U.S. and Australian crops
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GENEVA, Switzerland (Reuters) — La Nina could occur in a weak form this year, says the World Meteorological Organization. The weather phenomenon is typically linked to flooding in the AsiaPacific region, drought in the U.S. southern plains and a more intense hurricane season over the Atlantic Ocean. A borderline La Nina situation has developed in recent weeks in the tropical part of the Pacific Ocean, where sea surface temperatures have cooled slightly. However, the United Nations agency said there is an equal chance of neutral conditions returning. “If a La Nina event does occur, current indications are that it would be considerably weaker than the moderate to strong 2010-11 episode, which ended in May 2011,” the organization said in a statement calling for continued close monitoring. However, there is virtually no prospect of El Nino occurring this year, it said in an assessment based on data from climate prediction centres and experts worldwide. El Nino is La Nina’s opposite weather phenomenon, which warms the Pacific. La Nina, a natural cooling of the Pacific Ocean, occurs every two to seven years, causing major climate fluctuations, including altered tropical rainfall patterns. The 2010-11 La Nina episode was linked to disastrous flooding in parts of Australia at harvest, slashing the quality of the wheat crop. It caused dry weather in the first half of Argentina’s soybean growing season and is associated with the extreme drought gripping Texas, Oklahoma and southern Kansas. La Nina weather could return to again delay planting of Brazil’s grain crop, forcing Chinese buyers to rely on U.S. Gulf port soybeans longer and putting Brazil’s corn output at risk, grain specialists said. access=subscriber section=markets,none,none