Finally a bit of respite for Soybeans but now front month is so close to $10 that it will become technical appealing! There was a quick spike 2 cents above the magic level yesterday but market closed flat, far from the highs, H8 settling unchanged indeed at 992.25 cents. Corn closed down -1.25 cent. Wheat was still a bit stronger and closed up +1.50 cent in Chicago, +2.00 cents in Kansas and +2.25 cents in Minneapolis. On the other side of the Pond, MATIF Wheat ended flat while London Feed moved down -£2.20. Market is getting a bit nervous, triggered by a few weather concerns (US is dry and cold. Argentina is dry, Brazil is wet, EU is wet, Black Sea is lacking of snow layer), and the level of short in the market makes traders quite nervous. However, fundamentals are currently heavy and most of the short is, so far, sticking to their bet.
In Chicago, funds sold 5,000 Corn, bought 2,000 Wheat and were even on Soybeans.
Night session is strong so far with Soybeans up +1.75 cent, Corn up +0.75 cent and Wheat up more or less +2.50 cents in Chicago and Kansas and +3.25 cents in Minneapolis. European market are expected flat so far but ticking higher would make sense, they may however suffer from weaker US dollar.
Algeria bought at least 500,000T of milling wheat, tough to know really how much and at what price. For sure, this lack of transparency is not helping them to get the best, but they are still very picky about origins, mainly French thanks to very active lobbying, but for how long? Price is said to be ranging between $219 and $220.50 CNF for French and Argie origin, which is more than what they would get accepting Black Sea. Jordan is back seeking 100,000T of feed barley.
UK Preliminary Quarterly GDP is expected up +0.4%, US Advance quarterly GDP is expected at +3.0%, US Core Durable Goods Orders expected at +0.5% month on month. It could be a busy day on the currency front! EURUSD is trading higher, above 1.2450, GBPUSD around 1.4225 and GBPEUR Cross Rate just below 1.1425.