- In a change from yesterday it seems the US weather is looking somewhat less threatening, in fact almost favourable, so the CBOT markets close in the red. Fund selling in corn and buying in wheat and soybeans was reported in an unspectacular day of trading. As we stated yesterday, the weather looks to be “normal” or average over the next couple of weeks and threats to crops would seem a distant prospect at the moment.
- One on-going issue continues to hover over the market, and that is Chinese wheat supplies, with Chinese importers currently trying to secure at least 500,000 mt of Australian wheat for January-March shipment. Their requirements and an unknown factor, but their activity in recent weeks suggests that they have a problem and are in the market to resolve it. The impact upon global wheat S&D will doubtless be interesting. On the one hand additional demand, potentially a bullish factor, and on the other hand the prospect of bountiful corn supplies which will weigh heavy on wheat prices.
- It appears that July trading will focus on weather issues and little else.