- Chicago markets turned lower when it became clear that Egypt’s GASC was unamused with today’s US wheat offers in response to yesterday’s tender for mid April wheat shipment. The tender was pointed at US supplies and it was expected that Egypt would take advantage of the $100 million credit line offered by the US. Prices rose in early trade on the back of the tender announcement, but fell when it was announced that Egypt was going to “pass” prices which were some $50 to $100/mt over the last European levels purchased two weeks ago. In the wake of Chicago prices shedding as much as $0.10 (recovering a touch into the close) Matif followed with a €2 decline as more “long liquidation” was reported in the Black Sea. Shortly after the Russian AgMin proved (yet again) its mastery of the art of diplomacy by stating “it may review the export tax” once it has February export data!
- Soybean prices eased as Brazilian producers returned to the selling arena post Carnival, and this is expected to continue to weigh heavy as harvest progresses. It should not be forgotten that with the Brazilian Real at 2.83 vs US$, yesterday’s price uplift must have made farmers in Brazil think it was more like Christmas than Carnival! Soybean prices calculate at an equivalent of $13.40-$13.50.bu and with yields still being reported at record levels at farm level these sort of price levels are well above last year.
- Tomorrow sees the start of the USDA’s Outlook Forum conference and it is expected that new crop acreage and yield data will be available post keynote speeches. Initial ideas suggest soybean acres at 84-85 million and corn at 88-89 million.