- Markets appear to have continued to take yesterdays stocks report to heart and losses have extended into trading today. The soybean market (Nov ’13 contract) “gapped” lower on opening leaving a chart gap formation which may yet become an upside target in coming days. Wheat has traded either side of unchanged and lacks the downside momentum which has been exhibited in the soybean complex and corn. The pace of winter seeding in Russia and Ukraine, which we reported on last night, is clearly lending some support. It is possible that any further decline in corn may well pressure wheat values, but without that pressure wheat appears to have found a base – for now. Wheat’s premium over corn (basis Dec ’13 CBOT contracts) has grown still further to $2.44/bu or 55%.
- Market confidence may not be assisted by news overnight that the US government is partially “closed for business” for now, and it is possible that this could cause delays in forthcoming USDA reporting schedules if staff are not in a position to collect, collate and prepare the necessary data.
- US crop conditions, reported yesterday showed corn rated as good/excellent to be unchanged week on week at 55%. 12% was reported to have been harvested, which is behind the five year average of 23%, unsurprisingly. Soybeans were 53% good/excellent, a surprise 3% improvement week on week, and 11% is harvested as against the five year average figure of 20%.