Commodities

Morning Comment – #Wheat #Corn #Soybeans #OATT – 24/01/2018 11.15am GMT

Soybeans are The Brave Little Tailor: “Seven at One Blow!”. After a sideways session, Soybeans finally ended up +2.00 cents, on the weather concerns in South America, especially in Argentina. So far, the issue is not massively worrying, but with a such amount of short in the market, it’s kind of understandable some get trigger happy to cut their loss. The rest was collectively down across the board: Corn moved down -0.75 cent, Wheat-4.25 cent in Chicago, -5.25 cents in Kansas and -2.50 cent in Minneapolis. On the other side of the Pond, weaker day also, but just a tick down in MATIF and -£0.75 for London Feed.

 

In Chicago, funds bought 3,000 Soybeans while they sold 6,000 Corn and 3,500 Wheat.

 

Night session is (finally?) down on Soybeans, -3.50 cents and up on Corn (+2.00 cents) and Wheat (+2.00 cents in Chicago, +1.75 cents in Kansas and +4.25 cents in Minneapolis). MATIF wheat is ticking down along the curve while London Feed is down -£0.25 on the old crop and +£0.20 on the new crop.

 

South Korea is seeking 12,000T on GME-free soybeans. GASC has purchased 40,000T of soybean oil (between $812 and $821 CNF) and 16,500T of sunflower oil ($792.75 CNF). Philippines’ private importers bought 224,000T of feed wheat from Black Sea, EU and Australia. Japan bough 25,480T of feed wheat and 3,250T of feed barley through the SBS tender, quite successful this time! However, Jordan failed (again) to purchase 100,000T of wheat.

 

US Crude Oil Inventories are expected at -1M barrels. Meanwhile, NYMEX Crude is trading above $64.50 and ICE Brent at a $5.20 premium.

 

Yesterday, German ZEW Economic Sentiment was better than expected to 20.4.UK Public Sector Borrowing was lower than expected, lower growth meant rebate from EU, so less needs to borrow. Today, EU Flash Manufacturing PMI and Flash Services PMI were released respectively at 59.6 (not as good as expected) and 57.6 (better than expected). EURUSD is trading around 1.2325, GBPUSD just below 1.41 and GBPEUR Cross Rate around 1.1430.

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