Soybeans reverted a little bit today, the level of 950 cents is technically sticky. Soybeans ended up +4.25 cents on K7, a tick above 950 cents. Corn was mostly flat, pretty boring. Wheat corrected the yesterday’s movement: it was probably fuelled by planting delays of spring wheat but on the other side condition are pretty encouraging on winter wheat (54% G/E and 13% P/VP) while the development is pretty good as 19% has headed. Every rebound should be seen as a selling opportunity, if situation might be a bit tighter in the US due to fewer wheat plantings, nothing indicates that the world balance sheet will take a hit next season. Chicago ended down -3.50 cents, Kansas -1.50 cent and Minneapolis -2 cents. MATIF just ticked down on the front month but the curve was up a couple of cents. It will be all about spreading from now. CME EU was down -€2 but only a tick on U7. U7 (new crop) is quoting at -€3 discount to MATIF, it is very encouraging to see the quality spread realistic, CME needs a big crop now!
In Chicago, funds sold 2,500 Corn and 3,500 Wheat while they bought 6,500 Soybeans.
There is rains forecasted in the US, this should be good for the winter wheat and bring moisture for plantings.
US Crude Oil inventories were down -1M barrels, as expected. It’s the second week in a row! However, there was a heavy correction today, in excess than -3.75%. Market focused instead on the rising output and was down for the third straight day. Next event will be OPEC meeting in May. NYMEX Crude closed below $50.50 and ICE Brent is trading with a $2.43 premium. On the Ethanol side, stocks are up 131,000 barrels to 23.03M barrels and production was up 7,000 barrels per day to 993,000 barrels per day, so demand was overall weaker. On Freight, Baltic Dry Index BADI was down -16 to 1,278, led by lower demand on the larger vessel segment (Capesize Index down -4.05%) while Panamax Index was only down -0.56%.
Nothing much on currencies, Finale Eurozone CPI was as expected to +1.5% and Core CPI at +0.7%, also as expected. The main event was in the Westminster’s House of Commons. Out of 650 MP’s, PM Theresa May needed 434 votes in favour to call an early elections. In other words, with 230 MP’s Labour could have block it by himself, but this would have been seen as antagonising and would have destruct even more their popularity. Scottish SNP could also have helped them as legitimating Theresa May would go against their plan of independency. But the prospect, with a low probability, to be able to form a coalition with Labour (in case of a Tory collapse) was too attractive. But 13 MP’s only dared voting against, turkeys have voted for Christmas! EURUSD is trading just above 1.07 and GBPUSD above 1.2775, both a bit down today.