- Chicago markets closed lower on a combination of profit taking after yesterday’s rally and what appears to be firm action by Brazilian authorities to minimise disruption by truckers. Whether this will be lasting remains to be seen, but the market seems to like the moves. Five Brazilian states have now got authority to impose massive fines upon offending truckers and unblock roadways. Six remaining states are currently reviewing the situation. The flow of soybeans into both Paranagua and Santos appears to be closer to normal than previously.
- It has been rumoured, but not confirmed, that S American soybean meal has been traded into south eastern US. The prices calculate and we would not be surprised to hear confirmation before long.
- In an announcement today Russia confirmed it would not levy a tax on the export of barley or corn, and it would hold the levy at steady levels in wheat. Exports have slowed dramatically in recent weeks as the tax has hit home and it is anticipated that a further1.6 to 2 million mt will eventually be exported bringing the total to 20.5 to 21 million mt.
- Both Black Sea and Argentine corn suppliers are fighting for export trade leaving the US out in the cold, much as their wheat trade has been for much of the season. On this basis it continues to feel as if the USDA has overestimated US export volumes and potentially this may result in an upward revision of end stocks.
- Finally, the Central Bank of Ukraine has suspended currency trade until Friday in the wake of the continued fall in the value of the Hryvnia.