Another day of short covering, market rallied again in decent volume: funds bought 18,000 corn, 10,000 soybeans and 8,000 wheat contracts. The rally was fuelled by the usual concerns: too wet in the US, fusarium on wheat, dryness in Canada and Europe,… Then next week it’s going to be drier and warmer in the US, too warm? It should not be a concern. On its side, Europe is seeing some well expected rains. The US rally was contained by aggressive selling from farmers. One can genuinely be clueless about what’s happening! Heavy short before harvest, great availabilities but concerns about quality. MATIF followed higher, for the same reasons.
US Export sales were up in wheat 434.6kT (+118.7KT) and where on the top ranges of expectations. Corn was down from last week to 794.3kT (-33.3kT) as expected, while soybeans were unexpectedly much lower than expected to 321.3kT, down -343.6kT from last week. In Europe, EU cleared 361kT of wheat and 74kT of Corn
IGC cut new wheat crop by 4MT to 711MT and raised corn by 2MT to 963MT.
Everyday these days is the last chance for Greece. What we’re sure, the 30th of June will be the point of non-return. There was some conflicting reports of the new Greek proposal being accepted then it was denied,… No one knew what was going on! However, by the end of the night, creditors had officially refused the proposals. Brexit wise, poor David Cameron was relegated at the end of the dinner, between the desert and the coffee, everyone was probably sleeping already as this Eurogroup meeting had a lot to deal with… EURUSD is navigating around 1.12.