- Today has seen the funds as sellers of grains with CBOT wheat shedding close to 3% and corn around 2% whilst soybeans have made modest gains. Slow US and world export demand is clearly pressuring grains whilst the soybean complex has caught a bid on short covering ahead of the soon to be deliverable August contact. There has been a noticeable absence of US farmer selling, but as the Louisiana soybean harvest s expected to commence by mid-August neither crushers or exporters appear unduly concerned over tight supplies as was the case a year ago.
- Black Sea wheat sellers appear to be having a rough time finding fresh demand, Russian export pace looks to be around 30-40% of last year for July/August, which suggests that volume exports will be pushed forward to deferred positions. If Russia is to reach annual tonnage export projections there needs to be a much more aggressive approach to sales in the immediate term. The Russian crop appears to be growing by the day based upon reported yields and we look for new lows in Russian fob offers.