Commodity Spotlight Agriculturals October 2013

Surpluses wherever you look – and 2014 is coming into view

There are signs of global record crops on wheat, corn, soybean and rapeseed markets. While this will significantly improve the supply situation for corn, the stocks-to-use ratio for wheat should drop further. This outlook and reports that heavy rainswill significantly reduce the sowing area for winter grains in Russia and the Ukraine have driven wheat prices up in relation to corn. This should continue until US corn acreage is reduced in 2014 on the back of the weak price development. Given the good supply situation, soybeans, rapeseed and cotton are unlikely to manage any large price leaps either.

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