The USDA downgraded its yield forecasts for corn and soy last week, prompting a bounce in the corn price which has hitherto been weak this year. There is still no new benchmark price for potash and volumes across fertilisers are weak.
Strong exports prevented a material rise in Malaysian palm oil stocks in July despite the fact that we are entering the peak production period. The palm oil price bounced.
■ Low volumes in potash and urea: There is still little new potash business and no new benchmark price has been set since Uralkali's announcement that it is exiting BPC. Urea markets have also been quiet. Chinese suppliers are in deadlock with Indian and Pakistan buyers, refusing to sell prilled urea below $290 per tonne.
■ Palm oil prices bounce on Malaysian palm oil data: Malaysian July palm oil inventories remained flat versus June levels (and are 17 per cent lower than July 2012). Although we are approaching peak production seasons, strong exports (+10 per cent year on year) prevented a build-up of inventories. Palm oil prices bounced.
■ Sirius Minerals (SXX) secured up to £25m of convertible financing with an Institutional Investor. This was a timely funding solution that shores up the balance sheet. Securing project approvals and financing remain the key share price catalysts.
Farming fact of the week: The world record for extracting the most milk from a cow in two minutes is 3.52 pints.
