- CBOT markets opened the week on a lower note as improved US and Brazilian conditions pressured prices. Active US harvesting in the central and western Midwest has been reported although eastern Midwest areas are still experiencing delays due to wet soils and lingering rainfall. Farmers in Brazil are either actively planting soybeans in Mato Grosso or are about to start in advance of forecast rains. Weekend rains were better than expected and producers are optimistic that the wet season has, at last, started across the north of the country.
- It has been reported that funds have returned to the selling table in the aftermath of last week’s short covering rally and whilst some consumers are fixing prices on weakness there is not any large scale buying evident at present.
- Matif wheat futures still have to cope with delivery silos that are reported to be choked with stock leaving Nov ’14 contract holders potentially unable to deliver if they so choose. Whether this is a help or a hinderance to the market right now is something of a mystery but, as always, time will tell. There is a suggestion that as a consequence of early snows in FSU regions we could well see some of the (Kazakstan) wheat crop standing in the fields until spring, which will potentially limit exports to some degree.
- Yields of corn in France are reported to range from good to stunning and it has been suggested the crop could reach 18 million mt.