After a shy Friday, wheat seems to be keen on continuing going down and is leading the grains down. Funds drastically reduced their short position, risk off before the USDA WASDE report. The report was not bullish by any means and they seem to be on their rod to reinstate their massive short position. Watch out tonight the crop and condition report and the NOPA crush. NOPA Crush is expected to hit another record, above 145 million bushels. Added to a slow finalisation of soybeans planting, this could support the soy complex. Wheat harvest will show at what pace can the harvest be done, we’ll see if it’s really too wet to harvest.
Although it is still wetter than the season’s normal, the soil moisture is ideal in most part of the US. If some area will lose yield and quality especially in Texas, Oklahoma and Kansas, this will be hugely beneficial for other areas. A very good point as well, no sign of drought this year.
It is still hot and dry in France and even if last week French Ministry forecasted 7.70T per hectare, in some area, analyst forecast drastic cut on yields if rain doesn’t come quickly.
Grexit is beginning to be a roller coaster for nerves! One day an agreement is closed, the other day Germany seems to throw the towel, the next day Greece refuses conditions. As of today no more talks are planned until the Eurogroup meeting on the 18th of June. It was already the meeting of the last chance but for sure there will be a meeting of the really-really-no-joking last chance… Just two more weeks to bear this, 30th of June, a deal will be on the table. Or credit event.