- Following yesterday’s US hot weather scare and price hikes we have today seen cooler weather forecasts and some easing of price levels. Seemingly those who bought yesterday were selling today! Maybe that sums up the state of the market right now.
- Concerns were elevated over the Chinese economy when their manufacturing index fell to a nine month low suggesting the manufacturing sector and potentially the economy is declining. The knock on effect in energies, metals and equities has also been in declining prices. Unconfirmed rumours of a Chinese bank in difficulties circulated throughout the day added to which bank run stories started to circulate. It must be restated that these are, as yet, unsubstantiated but in the good old “no smoke without fire” tradition, the stories carry a degree of impact.
- Brussels issued wheat export licences totalling 226,626 mt bringing the season total to 20.528 million mt, which is 5.883 million mt ahead of last year (40.2%).
- We continue to expect volatility to remain relatively high ahead of next week’s stocks and seedings report.