A very active Friday, Wheat rebounded on the fears of export ban in Russia. Denied by authorities so far. Russia will be active and exporters will sell as much as they can until the restriction comes (if it does). Plus some technical as the dip did not create a panic but a buying opportunity, and Wheat rebounded +18.25 cents in Chicago, ending the week higher! +17.50 cents in Kansas, +12.25 cents in Minneapolis. In Europe, similar move, +€3.50 on the MATIF and +£2.85 for London Feed. Soybeans and Corn were down -4.00 cents and -1.00 cent in Chicago. Funds sold 7,000 Corn, 4,000 Soybeans and bought 10,000 Wheat.

 

Night session is rebounding on Soybeans: +10.25 cents. Corn is up +0.75 cent, and Wheat down -3.75 cents in Chicago. MATIF has opened a couple of ticks down, and London Feed is trading -£0.60.

 

ProFarmer Tour is starting, aka the contest of finding the worst looking cob! Joke aside, it always good an interesting perspective but with the limitation of a low amount of sampling for a huge crop volume.

 

The week was strong on Soybeans and Corn, messy on Wheat. Soybeans and Corn were both up, respectively +3.61% and +1.82%. SoyMeal and SoyOil followed the beans with respectively +2.61% and +0.46%. On Wheat, markets were all over the place with Chicago up +2.51%, Kansas +0.94% and Minneapolis down -0.04%. On the other side of the Pond, MATIF was up +0.94% in euro and -1.69% in British Pounds (EURUSD was up +0.24% and GBPUSD was down -0.37%).

 

A nice miss by Reuters. Anyway, with the volume going to electronic, with producers, users and commercials having the same clearing account for spec and hedge, it is now very difficult to assess the spec volume. Reuters saw a week (ending on Tuesday) with selling across the board: 14,500 Wheat, 23,500 Corn and 18,000 Soybeans, in other words, funds were selling while market was going down. Wrong. CFTC COT showed that funds have actually bought 2,361 lots of Wheat, increasing their long to 66,948 lots, and bought 4,743 lots of Corn, decreasing their short to 24,962 lots. It seems the dip was seen as a buying opportunity rather than triggered a panic. Funds did sold Soybeans, fewer than expected: 2,641 lots, increasing their short position to 58,924 lots. From Wednesday to Friday, funds are expected to be buyer of 8,000 Wheat, 11,000 Corn and 9,000 Soybeans.

 

It took 13 years. The wheat genome has finally been cracked. According the University of Zurich, the Genome is 5 times bigger than the human genome, that gives an idea of the extent of the research that has been involved. Latest paper has 202 authors from 73 research agencies in 20 countries! What next? The first step is to identify the genes to resist pest and try to isolate them to introduce them in cross breeding or GMO.

 

German PPI was lower than expected today with +0.2% (+0.4% expected). No major stats expected. EURUSD is trading around 1.1405, GBPUSD around 1.2735. NYMEX Crude is trading around the $66 dollar mark with ICE Brent at $6.1 premium. Is the bullish wave over? China is sticking to Iranian oil despite US sanctions so the supply is still there. Concerns about demand and economic growth, especially in emerging markets, could lead the supply to still appear good enough, to the OPEC despair…

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