- Today saw Egypt’s GASC purchase a further 175,000 mt of wheat at something like $20/mt over their last purchase price. The latest tender was for mid-April shipment, and tenders were awarded to the US (55,000 mt), Romania and Russia (60,000 mt each). It appears the cheapest French offer was some $10/mt too expensive to compete! Ukraine uncertainty was clearly a factor in pricing, and the US offer (which was booked) looked to be extremely cheap, particularly when compared with other offers.
- Egypt aside, there was little to inspire a thin marketplace, Russian annexation of Crimea appears to be going ahead as the world watches what might, or might not, happen in eastern Ukraine.
- Further selling, by China, to US, of soybean cargoes sourced from S America appears to be happening, although this is not weighing on prices – yet. Today’s price rally has inspired further farm selling by Brazilian and Argentine farmers, which may have limited gains somewhat.
- We have commented privately on the size of current fund positions, which are large, and the potential which this has to move markets, particularly ahead of the stocks report scheduled for release at the end of the month. Risk level remains high!