- Wednesday’s USDA report is just around the corner and markets are trading cautiously until release, there is an anticipation of US soybean stocks reducing on account of higher than anticipated exports and this is underpinning prices at present.
- There is a suggestion that Ukraine has defaulted on 500,000 mt of corn sold to China due to “difficulties” in sourcing, although this is unconfirmed at this time. There is also talk of China permitting imports of US DDG’s to assist end users who are experiencing financial difficulties, and is despite the ongoing MIR162 debacle. DDG markets have rallied a touch on the news but it has to be said there is no shortage given the recent ethanol production uplift.
- Crude oil prices are lower once again with markets shedding more than $2/barrel and there is something of a drag on commodities as a result. The US$ is stable and the Russian Rouble remains deeply troubled amid lost oil revenues.
- The US weather forecast appears to offer a retreat of tdry conditions across the West Coast and Southern Plains in the coming two weeks with a cumulative 6-8” moisture across CA, OK and WA in the next 10 days and an isolated system working across TX, OK and East KS by the weekend. Temperatures look to remain mild and major snowfalls look absent through to 22 Dec.
- S American forecasts maintain a stagnant pattern of light to moderate rains across most of Brazil and Paraguay in the coming ten days with Argentina a little drier. The pattern looks favourable, and crop health maps continue to show improvement. The developing El Niño pattern suggests that S American forecasts (normal temperatures and precipitation) are unlikely to change into early January.
- Drier areas of W Australia are forecast to receive welcome rains in the coming ten day period whilst a mix of rain/sunshine elsewhere will permit a more normalised planting pace.