- We start the week in a quiet manner in what is almost guaranteed to be a quiet run up to the USDA’s next, and much anticipated, report on Thursday.
- Front month contracts in Chicago are soon to expire, and with cash premiums evaporating fast as newly harvested crops reach eager customers, the futures have faded fast. Buyers are reluctant to purchase more than immediate requirements and the old crop premium will now be very short lived.
- We can see a scenario building where season highs have been scored, grains (corn and wheat), as we have reported previously, would appear to struggle to make significant gains in the light of global supply rebuild and soybeans have a similar uphill battle in an enlarged world supply situation.
- There appears slightly more rain in US forecasts and, encouragingly, there is little in the way of a damaging frost forecast through to the last week of the month.
- We continue to look forward to Thursday’s figures with interest.