Cereals

  • UK wheat exports in February rose from January to 99KT, the current pace is still lagging behind that of last year over the same period, although that is more a reflection of lower production.
    • Feb exports at 99.1KT vs Jan 91.1KT
    • Feb wheat imports at 136.8KT vs Jan 151.9KT
    • Cumulative wheat imports at 1.13MT vs 1.03MT last year for same period.
  • LIFFE May-17 wheat contract saw highest volume traded since Oct 2016 with 422 lots traded (100T per lot) May-18 was most traded with over 500 lots traded.
  • Funds confirm bearish position on Kansas Hard Red Wheat by extending short positions from 1.7K to 7.6K.
  • Funds also extended bearish bets on Chicago wheat. (see chart of the day).
  • Funds continued to hold record bearish position for this time of year across US grains, reminding the market of the bearish sentiment which remains in the market.
  • Oil prices continue to rise following US missile attack on Syrian airbase. The Russian rouble has also fallen in wake of the strike which should support wheat exports.

Oilseeds

  • Money managers continue to sell soybeans, extending their short position and applying further pressure to oilseeds prices which have fallen sharply in recent weeks. (see chart of the day #2)
  • The Argentine soybean harvest continues to make slow progress following recent rains and is reminding the market of the floods seen last year, although not that bad yet.
  • Increasing monthly palm production put palm oil prices under sharp pressure today trading lower by 2.5% and dragging wider oilseeds with it.
  • Brazils soybean export commitments reach a record level for this time of year following a record expected harvest.

Chart of the Day#1: CBOT Wheat managed money

Chart of the Day#2: CBOT Soybeans managed money

Futures & Options prices