- CBOT soybeans (and meal) and wheat closed in the red whilst corn made some gains today. The key to corn’s contra movement is likely due to some short covering and unwinding of spreads amid positive yield results which continue to materialise. The Reuters report that India could be about to reduce its minimum wheat price to exporters (by up to $40/mt) could well have been a trigger for the drop in Chicago, which was (interestingly) not mirrored in European levels today. If the report proves correct this would allow Indian wheat to be more competitive in global markets and reduce the current level of stocks in India, which are becoming an almost embarrassing issue with reported government holdings in excess of 36 million mt. This level is substantially above the target stockholding of 11 million mt.
- There has been some improved weather news from Russia and Ukraine where dryer conditions have allowed winter plantings to reach 64% and 73% respectively. Wheat and corn prices in the region have continued to rally potentially as farm selling slows due to fieldwork pressures as farmers rush to finish corn harvest and plant wheat. It would appear likely that the total planned wheat acreage will not be fully seeded and as a consequence increased spring plantings of corn and sunflower seed will take up some or all of the area.