News Grain TA
Grain TA
The negative mood on the wheat market continues. That while there was relatively much bullish news last trading session. Algeria has bought 700.000 to 800.000 tons of wheat, believed to be of Russian origin, and Bangladesh and Tunisia have put out tenders. Egypt is also on the market for an as yet unknown amount of wheat. In its Crop Progress report, the USDA revised the condition of spring wheat further down than analysts expected. The Australian Meteorological Institute calculates the chance of an El Niño at 70%. This weather phenomenon usually causes below-average rainfall in Australia and therefore lower grain yields.
Corn is also on the way down. A good corn crop in Brazil is cited as one of the causes by analysts. The state of corn in the US remains a concern, although the USDA made no unexpected adjustments. The weather after the corn in the US is good. The conditions during flowering are moving towards ideal, according to an expert, with precipitation and moderate temperatures.
Soy remained flat last trading session. China has recently placed a few large orders in the US and made new purchases to build up inventory and thus keep the price stable in the Chinese domestic market. From Brazil, however, there is an ample supply of soy below US prices.
Jurphaas Lugtenburg
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