What could have been a day on the downside became very quickly a rallying day. One word. Russia. It is obvious, and if market discounted it with the lack of official news the past few days, he’s very naïve…
Yesterday ended up being another day in the red as Soybeans moved down -7.25 cents, Corn -1.75 cent and Wheat was slaughtered again: -15.50 cents in Chicago, -17.50 cents in Kansas and -16.00 cents in Minneapolis. MATIF Wheat was also down, -€3.75, closing below €200 on U8. London Feed was closed.
It was all about Wheat on Friday as Corn and Soybeans were taking a breather, ending respectively up +1.75 cent and flat. Indeed, Wheat continued to go down as the availability of feed grain will be good, there was also some profit taking and Russia threat to ban export is failing to materialize.
Another difficult day for Wheat as Chicago ended down -18.25 cents, Kansas -17.75 cents and Minneapolis -14.25 cents. Market is still wandering about as there is supply issue (notably in Europe and FSU) but at the same time a relatively early harvest in the North Hemisphere.
A very active Friday, Wheat rebounded on the fears of export ban in Russia. Denied by authorities so far. Russia will be active and exporters will sell as much as they can until the restriction comes (if it does).
Soybeans had a two sided session and managed to recover well, ending up +6.50 cents, However, Corn and Wheat closed down again by -1.25 cents and -16.00 cents respectively in Chicago. In Kansas, Wheat ended down -18.00 cents and -15.75 cents in Minneapolis.
Friday was a USDA WASDE day but there was a few bits and bobs as a build-up. Stratégie Grains cut its European soft wheat harvest by -4.69MT to 127.68MT, -14.15MT year on year.
A messy Friday, market is a mess… Soybeans up +9.25 cents, Con up a couple of ticks, Wheat down -6.00 cents in Chicago, -1.50 cents in Kansas but +4.75 cents in Minneapolis. On the other side of the Pond, MATIF took a couple of ticks breather and London Feed was down -£1.25.
Last week in Chicago, Soybeans were up +3.73%, Corn +4.10% and Wheat +3.82%. Wheat in Europe was up +4.18% on MATIF (in euro) and +3.54% on LIFFE (in British ponds). So one could expect, or hope a breather.
