Nothing more to say about the slight disappointment and the lack of thrill of the USDA report. Ok, supply will increase but we kind of knew it already. Let’s now focus on the 2 next month, it’s where really the crops are going to suffer from het or confirm they’re indeed on a very good shape.
The only little excitement was in soybeans, floor sources are saying funds sold -12,000 lots. Futures are retracing a bit this morning, it seems that technically, approaching 950 on N5 is triggering new buying interests. They are helped by still some strikes in South America, fearing impact on the logistics.
Usually, in May, we’re not used to freezing but there are some talks about damages on wheat in the northern west part of Kansas. This will be out of the picture soon and we’ll move to hot and dry concerns for sure. USDA is expecting this, not moving the cord yield saying July is too determinant. So weather watch mood. With El Nino, Pakistan and India damages, it need to be watched carefully because can we now do better than the market expects?