- CBOT corn and wheat closed lower with the soybean closing a touch higher today. Movement was limited in fairly subdued trade ahead of Friday’s report. Once again we saw Dec ’13 corn making fresh lows as it grinds ever so slowly lower as harvest progresses.
- Egypt announced that it had secured another 60,000 mt of wheat, once again from Romania, interestingly its decision to “pass” on their last tender on 10 October because prices were “too high” did not pay off. They paid almost $7.00/mt more than was offered in their last tender, which just goes to prove that we can all make incorrect trading decisions!
- Lanworth, the Reuters forecasting arm, today released its latest estimates of corn and soybean output. Global corn production for 2013/14 was estimated at 958 million mt, an increase of 3 million mt month on month whilst global soybean production was 2 million mt higher at 290 million mt. US figures were forecast at 13.95 billion bu for corn which translates to a yield of 157.5 bu/acre, and soybean output was 3.293 billion bu and 42.8 bu/acre.
- There is little in the way of fresh news and we continue to interpret the longer term market direction as lower in the light of potentially favourable global crop conditions and prospects which point towards higher stock figures. We would be delighted to have our opinion confirmed by the USDA on Friday!