- The week started in quiet trade with fears over Chinese corn rejections, and potential DDG rejection, continuing to overhang the market. Wheat pressures came from improved snow cover offering protection in the US. The soybean market started the day lower, probably in something of a show of solidarity with the grains, despite today’s NOPA crush data which was expected to be high at 161.3 million bu.
- In crop estimates released today we have seen the Russian AgMin put their 2014 grain crop 5 million mt higher than last forecast at 95 million mt, of which wheat would account for 55 million mt. COCERAL increased their estimate of the 2013 EU soft wheat crop from 135.2 million mt to 135.86 million mt and reduced corn by 600,000 mt to 64.78 million mt. Favourable conditions, I.e cool temperatures, a crop which got off to an excellent start and little in the way of weather threats on the horizon all conspire to make next season’s crops look good right now.
- The week looks destined to be quiet as market participants head into the Christmas and New Year holiday season, risk appetite diminishes and new money awaits the new year.