News Grain TA
Grain TA
The wheat market entered negative territory in both Paris and Chicago. A new attack by Russia on the port of Odessa made the market a bit nervous at the start of the trading day yesterday. Drought in the US is certainly not over yet and the northern prairies remain colored red in the new drought monitor released yesterday. However, the mood in the wheat trade quickly subsided when it became known that US exports were at the lower end of trade expectations.
Other notable news came from Russia. During the Africa Summit in Saint Petersburg, the Kremlin promised six countries 50.000 tons of grain per month, delivered free of charge. Putin is making this gesture as compensation for stopping the grain deal. Grain prices have risen as a result, which is a major problem, especially for the poorer countries in Africa.
The weather largely sets the tone on the soy market. And that is where the problem lies at the moment. The weather reports are extremely contradictory. The extreme heat of the moment is feeding the bulls while the bears point to cooler temperatures next week and even a greater chance of precipitation. And once again there was a new soy order, this time for 256.000 tons with an unknown destination. The buyer probably comes from China and the country has therefore recorded a significant volume in a week.
Corn also lost ground. The price was partly influenced by the movement on the wheat market. Slightly weaker exports than expected also did not help raise the mood. And just like with soy, the weather plays a major role in the US, but it is difficult for the trade to determine what value should be attached to the messages.
Jurphaas Lugtenburg
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