- Thin markets have been the order of the day, no doubt prompted by the imminent USDA report as well as the start of the index fund roll which will start tomorrow (Wednesday). Uncertainty over the size of index fund rebalancing is leading to more caution than usual and a marked reluctance to take on additional risk.
- Talk of heat in Argentina is believed to be somewhat overdone and cooler conditions and rain are moving south providing some relief from warm and dry weather which has existed in recent weeks. Early yield data from Brazil’s Mato Grosso and Goais is reported to be at record levels, adding strength to the 90 million mt plus estimated output discussions. Current and forecast weather in Brazil will do little to reduce output in the near term and we continue to look for prices to come under pressure.