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Technical analysis August 2
The wheat quote on the CBoT was under pressure last trading session due to the departure of a ship from the port of Odessa. As a result, the price of the September wheat contract fell by 1% to $8.00,25 per bushel. According to experts, it is a good first step that another ship is leaving port since the Russian attack in February, but we should not celebrate too soon. For the time being, work is only being done to get ships that are already in Ukrainian ports out of the ports. Before empty ships can go to Ukraine to pick up a cargo, a lot has to be done, a source within the ship insurance industry reported to Reuters. Important agreements, including the procedure for empty ships on their way to Ukraine, have yet to be worked out within the grain deal.
Due to developments in Ukraine, the maize quotation was also under pressure on the CBoT. The September contract closed at $6.07 per bushel. The United States Department of Agriculture (USDA) also provided a surprise on Monday. In the Crop Progress report, the condition of the corn in the US has remained the same. Of the total acreage, 61% has the status good or excellent. The trade assumed that the condition of the crop would be depreciated.
For soy, the Crop Progress report contained an even bigger surprise. The condition of this crop has also been adjusted upwards due to favorable weather. 60% of the acreage is given the status good or excellent. That is an increase of 1% compared to last week. Market analysts expected a 1 or 2% cut for both corn and soy. As a result, on the CBoT, the price of soy fell to $15.94,25 per bushel. Another factor in the soy market is the mounting diplomatic tensions between China and the US over Taiwan. There are fears that China will import less soy from the US as a result.
Jurphaas Lugtenburg
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