Friday’s session was interesting on MATIF Wheat as the usual scams and manipulation have come back in force on the U8 expiry with U8 being down -€17.75. A few happy guys around, the issue, funnily enough, it’s always the same guys! Apart form that it was a relatively quiet Friday with MATIF Wheat down -€0.50 on Z8, -£0.65 on London Fed. On the other side of the Pond, very little conviction as well with Wheat (Z8) down -2.50 cents in Chicago, -2.00 cents in Kansas and -1.75 cents in Minneapolis. Corn (Z8) was up +0.75 cent. Only Soybeans showed a bit of willpower as X8 was up +4.75 cents. Funds bought 4,500 lots of Corn, 3,500 lots of Soybeans and sold 2,500 lots of Wheat.
Interesting week for sure. If Soybeans and Corn ended up relatively quiet, Wheat moved down dramatically. Soybeans were down -0.12% last week, with SoyMeal rebounding by 3.46% and SoyOil moving down by -1.52%. Corn moved up +0.93% in Chicago and -4.19% on MATIF in US dollar (with EURUSD -0.41% last week). But Wheat was in free fall mode, -6.22% in Chicago, -6.60% in Kansas, -4.88% in Minneapolis, -4.17% on MATIF in US dollar, -4.44% in London in US dollar (with GBPUSD down -0.31%). Wheat is paying tis toll as there is an abundance of feed grain, the lack of export control in Russia (yet) and the potential closure of Vivergo in the UK.
Reuters was wrong by some margin as they were sing funds buying 5,000 lots of Wheat, 24,500 lots of Corn and 9,500 lots of Soybeans. Indeed, CFCT’s COT showed fund sold 8,414 lots of Wheat, decreasing their long position to 42,766 lots, they nought a mere 73 lots of Corn, decreasing their short position to 56,884 lots and sold 9,107 lots of Soybeans, increasing their short position to 62,749 lots. From Wednesday to Friday, funds are expected to be seller of 9,500 lots of Wheat and buyer of 3,500 lots of Corn and 3,000 lots of Soybeans.
Night session is starting very slowly as Soybeans are up +2.75 cents, Corn down by -1.25 cent and Wheat is dispersed a couple of ticks here and there with no clear trend. In EU, London Feed opened down -£1 or so but is now trading marginally down by -£0.30. MATIF is expected flattish.
Saudi Arabia bought 1.5MT of barley at an average CNF price of $260.79. Jordan is back, seeking 120,000T of both wheat and barley. GASC is seeing sunflower oil and soybean oil. South Korea’s NOFI is seeking 138,000T of corn and 10,000T of barley.
No time for a Monday morning week-end blues as macro stats are coming! Final quarterly GDP of Japan as expected to +0.7% (USDJPY is trading just above 111.00, quite in the middle of the 18 months range. Chinese CPI was a couple of ticks better than expected (+2.3%) and PPI was as expected to +4.1% (USDCNY at 6.8618). UK monthly GDP was a tick better than expected to +0.3% but Manufacturing Production was down -0.2% month on month (+0.2% expected). EURUSD is trading a tad up around 1.1560 and GBPUSD is also up, trading around 1.2940.