Wheat is trading sideways… Market is having a lack of oomph and conviction today: down on ample supply prospects or up on short covering and weather fears? Struggling to make its mind up while corn is steady. Ethanol production is up 11,000 barrels per day to 969,000 barrels per day.
Soybeans are down on improvement of discussion over the strike conflict. Settlement between worker unions and ministry of labour is apparently on a good track. However, market did not seems to be really be bothered and worried anymore about it since a few weeks and integrate it actually becomes a way of life and logistic is still efficient enough so far in the area.
Egypt GASC bought 240,000T of wheat at an average price of $199.28 CNF, Vitol striking again with the best offer of Russian Wheat for the second time in a row. 180,000T of Russian Wheat and 60,000T of Romanian wheat. The only French offer was from Soufflet. Indeed, the timing is awkward for French wheat: first half July shipment: old crop or new crop? If old, what quality will remain? This is clearly tricky so no real surprise, French not keen on selling while Black Sea is aggressive these days. Interesting to be noted, Black Sea is still far behind last year as far as the GACSC is concerned. Indeed, French wheat has been so far the clear winner of the campaign with 42% of market share while it was only 13% last year.
MATIF has not been massively disappointed by the expectable news and closed on a small upside note. Very dull day actually. Apart on options where there was still a few combos and volatility strategies traded.
EURUSD still below 1.10. No particular news today. David Cameron is travelling in the Netherlands and in France to negotiate with European partners some adjustment on treaties. Interesting time ahead.