Markets ended the day on the down side across the board. Not really the kind of session that was expected before the quarterly stock report of Friday: one would expect a bit of short covering. Anyway, Soybeans led the pack with -7.50 cents as early harvest reports are suggesting higher yields than expected. However, consistently, the best fields are harvested first so this is very early to draw any conclusion. Wheat is planted in good conditions and failed a technical rebound and ended a tad down in Chicago (-0.25 cent) but still with a lot of spread action as it was down -1.75 cent in Kansas (now at -1.50 cent discount to Chicago) and down -2.75 cents in Minneapolis. On the other side of the Pond, MATIF moved up a couple of ticks, helped by lower EURUSD, CME EU was flat (one can now wonder – unfortunately – how long it will last) and London Feed had a nice sideways session and finally closed down -£1.00.
Night session is weaker across the board: Soybeans down -0.75 cent, Corn down -1.75 cent and Wheat down -4 cents give or take in Chicago and Kansas but up in Minneapolis +1.25 cent. MATIF is expected to tick down on the open.
In Chicago, funds sold 1,000 lots of Wheat, 3,000 lots of Corn and 7,000 lots of Soybeans. Therefore, being the cut off the CFTC COT week, market will expect funds to be buyer across the week for 6,000 lots of Wheat, 12,500 lots of Corn and 3,500 lots of Soybeans.
Jordan made no purchase on the 100,000T barley tender. Algeria is seeking milling wheat for December.
US dollar is rebounding, it seems like we hit technical levels and there’s a price rejection. EURUSD is back below 1.1750, GBPUSD is trading around 1.3375 and GBPEUR back below 1.14.