Nothing much to provide support to Corn and Wheat as the week started with a pure selling reaction to the COT, yesterday funds sold Corn and Wheat again, respectively 5,000 lots on 3,500 lots. Market will expect funds to be seller of 500 lots of Corn in the next COT, and seller of 4,500 lots of Wheat. The weather concerns of wheat are easing a bit as some widespread rain is forecasted in the US, so it hasn’t help either. Corn closed down -2.25 cents and Wheat -3.75 cents in Chicago, while Kansas an Minneapolis premiums suffered as Kansas dug further down with -7 cents and Minneapolis even worse down -10 cents. Soybeans were all about $10, playing with the level. Closed above, up +2 cents, with funds buying 3,000 lots (they are expected to be net seller of 500 lots on the next COT). MATIF wheat ended a couple of ticks down, CME EU -€1.


Night session was weak, same thematic, no need to ramble and rehash… Soybean went to the tea break with a nice looking 999 cents close (-2.50 cents), Corn was down unconvincingly -0.75 cent and wheat is keeping digging further down: -3.25 cents in Chicago, -3.75 cents in Kansas, -1 cent in Minneapolis. MATIF is down also -€.50 and CME EU -€1.75.


Oil is down again, and ICE Brent has now a $50 handle (trading below $50.25 while NYMEX Crude is now trading around $47.50. After decreasing only (but surprisingly actually) by -0.2M barrel last week, US crude oil inventories are expected to be back up, with +1.9M barrels. Bottom line, the supply glut is not over.


Japan received no offer in the SBS feed wheat and barley tender. Philippines privates are seeking for 150,000T of feed wheat and 20,000T of milling wheat. USDA sees next year Egypt importing 11.5MT of wheat while current crop is revised on the downside, by -0.8MT to 11MT. The Egyptian Pound devaluation is a reason for the slowdown. It also means that GASC is contributing to 50.5% of the total imports, and year is not over yet.


Scottish Parliament will most likely officially add a bit of fun in the Brexit debate as they will officially vote to have a second referendum. Theresa May will trigger Article 50 of Lisbon Treaty on the 29th of March. GBPUSD is trading just above 1.2450 while EURUSD is just below 1.08. The current US dollar weakness is due to scepticism on the capacity of Donald Trump to deliver the tax cut he promised.

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