Outside markets a negative background for grains
A mixed start is expected this am following mixed prices overnight. Crude oil is a little lower while the $ index is a bit higher, a negative background combination for the grains.
Egypt is in the market for optional origin wheat today with results due shortly before our opening and depending on what Egypt does, this could influence wheat's opening direction.
Argentine farmers are going on a 7 day strike starting Friday, during which time they will not sell any grain. If the strike only lasts 7 days its impact will be minimal but if it lasts a lot longer it could provide support for our grain prices as uncertainty about export availability causes buyers to look to other sources for grain, such as the US. Of course, Argentina doesn't have much exportable supplies of beans currently following their devasting drought last year and ahead of their next harvest, which is still roughly 6 months away. Therefore, barring a protracted months-long strike, the market isn't likely to react much to the Argentine strike.
South Korea will be in the market tomorrow for 110,000 tonnes of optional origin meal.
The Commodity Futures Trading Commission is revising their weekly Commitment of Traders report, issued every Friday afternoon, to include much more information. For example, they will break down trader's positions into more catagories, such as farmers, merchants, swaps dealers and hedge funds. The CFTC said they will put out the revised version of the Commitment of Traders report this month so supposedly that is what we will see this Friday, the last Friday of the month.
Better monsoon rains are forecast in India the next 3-5 days, where they are badly needed.
Only light, isolated rain fell in the western half of the US Midwest the last 24 hours but up to 1" better rain was seen in the eastern half of the belt during that time. Up to 1.5" of rain is likely in the southern half of the west the next couple of days, followed by mostly dry weather for several days. The eastern half of the belt will see rain today-Friday, up to 1.5", followed by dry weather for a few days. Much cooler temps are predicted across the belt over the weekend, which will slow development of corn and beans. ---Vic Lespinasse
Egypt is in the market for optional origin wheat today with results due shortly before our opening and depending on what Egypt does, this could influence wheat's opening direction.
Argentine farmers are going on a 7 day strike starting Friday, during which time they will not sell any grain. If the strike only lasts 7 days its impact will be minimal but if it lasts a lot longer it could provide support for our grain prices as uncertainty about export availability causes buyers to look to other sources for grain, such as the US. Of course, Argentina doesn't have much exportable supplies of beans currently following their devasting drought last year and ahead of their next harvest, which is still roughly 6 months away. Therefore, barring a protracted months-long strike, the market isn't likely to react much to the Argentine strike.
South Korea will be in the market tomorrow for 110,000 tonnes of optional origin meal.
The Commodity Futures Trading Commission is revising their weekly Commitment of Traders report, issued every Friday afternoon, to include much more information. For example, they will break down trader's positions into more catagories, such as farmers, merchants, swaps dealers and hedge funds. The CFTC said they will put out the revised version of the Commitment of Traders report this month so supposedly that is what we will see this Friday, the last Friday of the month.
Better monsoon rains are forecast in India the next 3-5 days, where they are badly needed.
Only light, isolated rain fell in the western half of the US Midwest the last 24 hours but up to 1" better rain was seen in the eastern half of the belt during that time. Up to 1.5" of rain is likely in the southern half of the west the next couple of days, followed by mostly dry weather for several days. The eastern half of the belt will see rain today-Friday, up to 1.5", followed by dry weather for a few days. Much cooler temps are predicted across the belt over the weekend, which will slow development of corn and beans. ---Vic Lespinasse
posted by InsightPublishing at
10:30 AM
0 Comments:
Post a Comment
<< Home