Cereals

  • Egypt announce they have enough strategic wheat reserves to last them 4 months following a purchase of 530KT of wheat by GASC from:
    • Russia – 235KT
    • Romania – 120KT
    • France – 120KT
    • Ukraine – 60KT
  • News of Egypts purchase was supportive for EU wheat and helped push Euronext wheat to 7 month highs and above recent resistance levels (May-17).
  • LIFFE wheat followed Euronext and US wheat higher and also was supported by a weaker sterling today.
  • According to government sources, India could reintroduce a 25% tax on wheat imports by mid March – The tax was lowered to 10% in September.

Oilseeds

  • January soybean crush in the US was estimated at 169.3Mbu.
  • Thousands of soybean trucks are currently stranded in wet conditions on Highways in Brazil as harvest is expected to reach 80% in Matto Grosso by Friday.
  • Yesterday comments from President Trump regarding the US biodiesel policy had follow through support for oilseeds during today’s session.
  • Crude oil settled slightly lower today as the dollar was supported by speculation over interest rate hikes.

Futures & Options prices