A week a bit sideways: ICE Canola +0.33% in US dollar (USDCAD +0.54%), MATIF Rapeseed -0.53% in US dollar (EURUSD -0.67%), Soybeans +0.41%, Soybean Meal +1.12%, Soybean Oil +0.43%, Corn -1.48%, MATIF Corn -1.47% in US dollar, Wheat -1.06% in Chicago, -1.36% in Kasas and flat in Minneapolis (ending at a premium of 187 cents to Kansas and 180.25 cents to Chicago, Kansas closed at -6.75 cents discount, this is still very messy); on the other side of the Pond, MATIF Milling Wheat was down -1.12% in US dollar, CME EU up +0.53% in US dollar and London Feed -1.49% in US dollar (mind you, GBPUSD was down -2.49%, so in Pound Sterling, LIFFE Wheat was up +1.02%). It was a kind of transition week, still digesting the Quarterly Stock Report, getting ready for the October WASDE and on top of this corn and soybeans harvest are undergoing. Big day on Thursday potentially!
And it’s reflected on the funds position of the CFTC’s COT. Reuters was expecting funds seller over the week ending Tuesday for 4,500 lots of Wheat and 8,000 lots of Corn. If funds sold Corn indeed (9,759 lots, increasing their short to 143,201 lots) they actually purchased 8,224 lots of Wheat, decreasing their short to 56,475 lots. Finally, it was expected funds to be buyer of 1,500 lots of Soybeans, they actually were on the sell side, for a little 562 lots, decreasing their long to 27,758 lots. From Wednesday to Friday, funds are expected to have sold 4,500 lots of Wheat, 2,500 lots of Corn and bought 15,000 lots of Soybeans.
Night session is weaker to start the week: -1.50 cents on Soybeans, flat on Corn, -3 cents on Wheat while MATIF is also down -€1.00, CME EU -€2.00 and LIFFE -£0.50. Position adjusting most likely this week, and European trader will gather to the annual European Commodity Exchange.
Mauritius is seeking 52,825T of wheat flour. Ethiopia is seeking 400,000T of wheat, delivered in inland silos through Djibouti port, tough execution there. Jordan is seeking 100,000T of barley also 100,000T of wheat. In Egypt, the halted French vessel is going to be sieved: if you sieve small enough and shake it enough you will find stuff!
Big day Tuesday for Spain. Catalonia probably won’t declare independence, but will declare to be willing to initiate talk with Madrid. Indeed, demonstration against independence (well, the Catalonia government is saying they should have been to vote) and demonstrations to push to talks seemed to have convinced the local Government to try a more diplomatic approach. Answer tomorrow evening when the Catalonia president will address the Parliament. Brexit next round of talk will start and we’ll know if EU is ready to talk about the future relationship or not just yet. EURUSD is starting the week a tad higher but nothing fancy, trading around 1.1740. GBPUSD is higher more significantly, trading above 1.3125 and GBPUSD is recovering above 1.1175 after PM Theresa May seemed to kill the plot against her.