- Chicago wheat and corn markets are trading about unchanged whilst soybeans have had a turn to the upside after yesterday’s report induced losses. Seemingly the market has some concerns over continued wet weather in the US Midwest into the end of this month. Wheat prices in Chicago have struggled as corn/wheat spreading has been active, and soybean meal support has come from strong Chinese interest stimulated by active domestic off takes. We would anticipate additional short covering into tomorrow ahead of the holiday extended weekend break.
- Goldman Sachs are reported to be recommending a bullish commodities stance and advising patience to long holders (who may be currently also requiring deep pockets!). Interestingly they also see soybean prices potentially down to our previously noted level of $8.85/bu, last March’s lows. Their outlook for corn was similarly holding downside potential despite a more bullish outlook for crude oil, which there forecast to reach $60 towards year end.
- Funds are heavily short, and if we see adverse weather scares, which is of course possible, prices could react sharply higher.