- Overnight rallies in Chicago markets have failed once again leaving closing prices a touch lower in what seems to be low volume trade. Consumers appear reluctant to follow any upside and Argentinian aggressiveness in wheat pricing to Egypt has surprised many. Many are questioning whether corn and soybean sellers will follow in their aggression in coming weeks as global exporters chase the few buyers that choose to raise their head above the parapet.
- Egypt’s GASC purchased 120,000 mt of wheat in a snap tender for 21-30 January shipment at an average price of $190.94/mt basis C&F with Argentina the seller – a first this season, but not totally unexpected given the Peso devaluation. Offered levels were some $8-10 below others and delayed payment of Letters of Credit is a hot topic today. The price is considered a season low and probably reflects the competitive nature of global grain pricing right now. Corn pricing is also expected to be equally aggressive and competitive in coming weeks so a “watch this space” approach would not go amiss at this time.