- The US markets have been closed today due to the President’s Day holiday which as one wag put it, “is where we honor (sic) the greatest hoodwinkers who have ever lived and breathed and prospered in America.” We could not possibly comment! Consequently markets have been quiet and global equities have been sharply higher to start the week on some short covering and reduced levels of concern over European Bank liquidity. Crude oil has seen gains and the US$ is a touch stronger whilst gold has eased back around $29/oz to $1,210/oz earlier today.
- Matif wheat gained in early trade even with news that India’s government estimated their 2016 crop at 93.8 million mt, below their target 94.75 million mt. Trade estimates sit in the range of 80-84 million mt making the government estimate appear large!. Egypt’s GASC passed on a weekend wheat tender citing both high prices and lack of offers as the basis for their decisions – doubtless the ergot debacle remains high in the mind of potential sellers.
- Brazil’s soybean harvest is gathering pace and farmers are selling on the back of good yields as well as sliding Real, any uplift in Chicago will likely see fresh selling impetus in S American selling.