Grains start expected steady/lower
A steady/lower start is expected this am, 3-5 down in wheat, steady/easier corn and steady/mixed beans. Crude oil and equities are lower while the $ index is steady, a slightly negative background influence for the grains.
Taiwan passed on their tender for up to 120,000 tonnes of US or Brazilian beans due to high prices. Corn hit a new 7 month low yesterday as very favorable weather continues to depress prices.
The Commodity Futures Trading Commission will hold hearings in late July and early August to consider position limits and banning waivers of these limits. Gary Gensler, head of this government agency that oversees all commodity futures and options trading in the US, testified in front of the US Senate Permanent Subcommittee on Investigations yesterday. He said the lack of convergence in the wheat futures market is unacceptable and indicated changes will be implemented over coming months to enhance convergence, or the coming together of the cash and futures price of wheat when the futures contract expires. Many blame index funds for this lack of convergence but this hasn't been a significant problem in other grain markets, where index funds are active. The issue has only been evident in the wheat market. I think this makes the argument highly suspect that index funds are responsible for the lack of convergence in wheat.
More very welcome rain fell in Argentine wheat areas the last 24 hours, improving conditions considerably with the exception of the southwest part of the belt, where only light rain fell. Conditions remain very good in the main Chinese grain areas but a period of hot and dry weather is expected to start early next week, which shouldn't be a problem unless it lasts more than a few days. The Indian monsoon continues its hit and miss pattern, greatly benefiting some areas while remaining poor in others.
The US Midwest had scattered rain yesterday and more of the same is predicted the rest of the week in the east while the west turns drier. Temps remain cooler than normal, preventing any heat stress. The 6-10 day calls for continued cool temps with below normal rain in the west, above normal in the east. ---Vic Lespinasse
Taiwan passed on their tender for up to 120,000 tonnes of US or Brazilian beans due to high prices. Corn hit a new 7 month low yesterday as very favorable weather continues to depress prices.
The Commodity Futures Trading Commission will hold hearings in late July and early August to consider position limits and banning waivers of these limits. Gary Gensler, head of this government agency that oversees all commodity futures and options trading in the US, testified in front of the US Senate Permanent Subcommittee on Investigations yesterday. He said the lack of convergence in the wheat futures market is unacceptable and indicated changes will be implemented over coming months to enhance convergence, or the coming together of the cash and futures price of wheat when the futures contract expires. Many blame index funds for this lack of convergence but this hasn't been a significant problem in other grain markets, where index funds are active. The issue has only been evident in the wheat market. I think this makes the argument highly suspect that index funds are responsible for the lack of convergence in wheat.
More very welcome rain fell in Argentine wheat areas the last 24 hours, improving conditions considerably with the exception of the southwest part of the belt, where only light rain fell. Conditions remain very good in the main Chinese grain areas but a period of hot and dry weather is expected to start early next week, which shouldn't be a problem unless it lasts more than a few days. The Indian monsoon continues its hit and miss pattern, greatly benefiting some areas while remaining poor in others.
The US Midwest had scattered rain yesterday and more of the same is predicted the rest of the week in the east while the west turns drier. Temps remain cooler than normal, preventing any heat stress. The 6-10 day calls for continued cool temps with below normal rain in the west, above normal in the east. ---Vic Lespinasse
posted by InsightPublishing at
10:24 AM
0 Comments:
Post a Comment
<< Home