- Chicago markets saw soybeans extending gains on technical trade; whilst a touch weaker overnight on profit taking gains were in evidence by the close. Funds were buyers of both soybeans and meal although flat in soybean oil. China appears to be crushing soybeans at a record pace and uncertainty over S American crops is keeping price spreads tight, particularly from an historic perspective.
- Chicago corn ended a touch lower and momentum is necessary to keep the rally going! Argentine weather remains a concern throughout the latter part of January but there appears to be clear evidence that corn demand will be stressed if prices continue to rally. Ethanol margins have collapsed as cash corn prices have risen and ethanol and DDG prices have dropped. This will likely trigger some changes!
- Wheat prices in Chicago have consolidated somewhat and global cash markets are a touch weaker. It seems the rally in US prices is somewhat overdone given current fundamentals. US export growth is required to draw down on stocks, which remain large to say the least! EU cash prices are a touch easier despite futures contracts making gains this week. A stronger Rouble and sufficient storage will help protect Russian farmers from having to sell, which could keep a price floor in evidence. Otherwise wheat fundamentals lack fresh input, other than global surpluses and until the N Hemisphere crop breaks dormancy we will see a lack of direction unless dictated by corn.