- Chicago has seen a down day of some magnitude today with wheat pushing to new contract lows with corn and soybeans being dragged lower amid fund selling. S American soybean and corn crops are being talked even higher and weakness in crude oil is adding weakness. The failure of markets to gain sufficient traction to break above recent highs or break out of the range has added to the general weak tone. It has been interesting to witness the willingness of farmers to sell into even limited rallies, which has had the effect of capping upside.
- European wheat markets have reacted in sympathy with prices closing lower amid ongoing concern over potentially burdensome closing stocks in the face of non threatening growing conditions.
- Put simply, consumers appear to be extending cover on price breaks whilst producers extend sales on price rallies. This has had the effect of keeping the market within its range and it will take more definite knowledge of N Hemisphere weather and spring plantings before we see a change of underlying tone.