Morning Comment – #Wheat #Corn #Soybeans – 20/05/2015

Nothing really new overnight. The main event of the day will be Algeria tender. Lower Euro and bearish sentiment should see some cheap French wheat as Black Sea is not accepted. No official line-Up published though. In Chicago, funds were back on shorting the market, wheat -7,000 lots, Corn -7,000 lots and Soybeans -6,000 lots. Market was red across the board on better weather than expected and stronger US dollar. On the both sides of the Atlantic, producers took the opportunity to sell the rebound. That might have help not to trigger new short covering. 

US weather forecast is still wet, slightly wetter than usual. If there is some localised problems, it is fair to say that the timing is great, conditions are good. Everything is season compliant as well in Europe, Black Sea is slightly drier than usual though. Northern Africa continues to be wetter than usual, next crops are definitely be better next year, worrying for French and Black Sea wheat exports.

 

Night session in the red, nothing huge, yesterday night, Chicago came back from its low, so it’s just a readjustment so far.

 

EURUSD back below 1.11, the 1.10 area will act as a resistance but if broken, back in the 1.05/1.10 range until next big event.

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