Cereals: 

  • 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).

Oilseeds: 

  • 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.

Of interest:

  • 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: