Evening Comment – #Wheat #Corn #Soybeans – 04/05/2015

Weather still favorable. Dry enough to plant but wet enough. Rain makes grain. Wheat and Corn are coming back from their intraday low though, a bit of short covering before the planting and condition report after the close. Big question on corn, 50% or not? Whatever the actual number, planting are now moving very fast. Fact. Chicago Wheat Corn spread continues to tighten.

 

Bird flu is back in the headlines. Iowa has four more farms infected (Iowa being the biggest egg producer in the US). The State of Emergency is declared and this is the third state doing so (after Wisconsin and Minnesota).Soybeans could not care less. Green day for soy complex across the board. They are helped by the strikes in South-America. Oilseed are following the soy complex higher.

 

No real surprise on the MATIF today. Down. Spreads up, pressure in on the K5 short, they can afford to spread without putting too much effort in it, rolling a short profitable short position when market goes down is kind of stress free. Dec15 150P traded 1000 times and there is still a bid for 1000 lots.

 

CFTC COT showed official numbers: funds are short 92,400 lots of corn, 106,900 lots of wheat and short 32,000 lots of soybeans.

 

On the currencies, it’s a quiet day, a bit scattered. USD up versus GBP and EUR but down versus the CAD. On other markets, precious metals are up, energy down.

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