Nothing much to talk about actually on this bounce. A bit of risk off really before the USDA WASDE of Monday. Soybeans are highly attracted technically by the level of $10 and finished up in excess of +15 cents. Corn and Wheat followed behind with more or less +5 cents. MATIF was down on its side, the and spread is getting hammered again, U6 is below €150 and Z6 below €160. Funds bought 8,000 Corn, 6,000 Soybeans and 3,000 Wheat yesterday in Chicago.
There’s some concerned over the quality of the Canada, the extent of the issue is not known but apparently there’s a bit of fusarium here and there. In France, France Agrimer said only 24% of the wheat crop has a 76 or better test weight. But still, grains are light but powerful: 63% of the crop is above 12.5% protein.
Night session was pretty quiet. Corn and Wheat were marginally up while Soybeans approached indeed 1,000 cents level. We’re too near not to say a little hello. MATIF, same old, pressure on U6 and the rest of the curve is mostly flat.
Algeria is said to have bought between $195 and $197 CNF for 300,000T to 400,000T, as usual it is rumour as the result are not published. Barley is even less transparent but price should be something line -$30 compared to the wheat. South Korea’s MFG bought 69,000T of corn, optional origin, at $188.45 CNF (plus $1.25/T of additional fee at destination). Ergot saga is still going on! It’s said that a 60kT vessel from Russia has been rejected at the loading and maybe we’re also talking about a 63,000T of rejected Romanian wheat. Supply concerns is luring, especially if Russian wheat is now involved in the shambles as it’s supposed to be the least subject to ergot.
On freight, Baltic Dry Index BADI is still on a bullish wave and is now at 792. US Crude Oil Inventories are expected later today, a build-up of 600,000 barrels is expected. Oil is trading higher, still in the $45/$50 canal: NYMEX Crude has a $46 handle while ICE Brent a $48 handle.
No surprise, ECB leaves rate unchanged and will do QE until march. EURUSD is trading higher, above 1.13. US Unemployment claims were better than expected to 259k. It probably will leave a last hope to those who expect FED to raise the rates, but it is still widely seen as unlikely.