The morning started in fine “turnaround” style with higher levels seen from the outset on a technical bounce from Friday and Monday losses, but this was not maintained as fund liquidation of soybeans resumed and dragged wheat and corn lower.

Soybeans broke below the $14 mark as prices search for a base and the technical sell stops were hit. Corn, on the other hand, found some price support from October lows which lifted values somewhat; whether they are robust enough to last remains to be seen.

We have had confirmation that bio-ethanol producer, Ensus, is utilising corn to boost starch levels in an effort to restore yields to more realistic levels. This follows hot on the heels of new year corn purchases by feed manufacturers who are finding better nutritional value in the imported grain.

UK wheat trade statistics show larger than expected September exports although these are likely to be “old business” committed well before harvest issues intervened. Spain appear to be the largest recipient of the UK shipments. However, it would seem unlikely that the situation will continue with imports expected to rise significantly from previous years.