- A weaker Euro supported EU wheat prices today despite UK and US wheat drifting lower.
- Last week speculators added 60K contracts to their bullish bets on corn.
- Argentine corn crop is seen in good condition following the recent floods which caused widespread damage to the soybean crop. A drier outlook in N.Brazil will help to accelerate a record soybean harvest.
- Current rainfall is seen as beneficial to the crops if Northern Europe and the Black Sea.
- Indian wheat imports from Russia, France and Ukraine may cease as exporters are asked to fumigate their crops with Methyl Bromide (currently banned in Europe).
- Grains were supported overnight as Chinese traders returned to the market.
- LIFFE discount between May and Nov contracts currently sits at -£10.25 vs last years premium (See Chart of the day).
- Egypt’s GASC buy 30KT of soybean oil and 60KT of Sunflower oil.
- Soybeans under pressure as US dollar strengthens.
- Rapeseed prices follow palm and soybean oil lower.
- Oil prices continued to rise as OPEC committed to its deal to cut output and indicating increasing it.
- Global stock rise and dollar strengthens on higher expectations of a US interest rate rise by the FED.
Chart of the Day:
Futures & Options prices: