Rebound across the board yesterday: Soybeans move up +6.00 cents, Corn +5.25 cents and Wheat +11.50 cents in Chicago, +9.75 cents in Kansas and +3.50 cents in Minneapolis. Chicago Wheat and Kansas Wheat closed at the same level (433 cents), bot at 175 cents discount to Minneapolis. MATIF Wheat ended up +€1.00 while London Feed was flat. Finally a decent short covering, nothing much more to explain it. A bit of weather concern here and there but market at this point doesn’t really care. In Chicago, funds bought 21,000 Corn, 7,000 Soybeans and 13,000 Wheat. Over the week ending Tuesday, market will expect to see funds buyer of 3,000 Corn, 21,000 Soybeans and 3,500 Wheat… Answer on Friday night with the COT!
Night session was strong again on Soybeans (+4.75 cents) but generally weaker otherwise: Cor is down a couple of ticks, Chicago Wheat down -1.50 cents, Kansas Wheat -1.25 cent but Minneapolis is up +1.25 cent. MATIF is suffering from the stronger euro and is trading -€0.75. London Feed is up between +£0.25 to +£0.50.
Tunisia is seeking 100,000T of durum, Algeria is seeing milling wheat, Jordan is back to try to get 100,000T of wheat. Finally, Japan is seeking 84,577T of food wheat from US and Australia. China managed to get rid of 77,961T of 5 years old wheat from its ageing reserve.
US Crude Oil Inventories decreased for the 10th straight week with -1.1M barrels, more or less what was expected. NYMEX Crude is trading just over $66 with ICE Brent at $4.6 premium.
ECB chose the expected status quo. However, a couple of comments from Mario Draghi were interesting. He said the euro strength is source of uncertainty and there are concerns over possible change in US policy. So EURUSD moved up (trading above 1.2475) as traders are unconvinced about the efficiency of the current ECB’s policy and a lot are expecting the policy to tighten. GBPUSD is approaching 1.43 and GBPEUR Cross Rate trading around 1.1450. US Unemployment Claims were slightly better than expected to 233k.