- It has been a day of losses both sides of the “pond” as buyers failed to put in an appearance today! Maybe yesterday’s corn low, its lowest in some 38 months, in front of a potentially huge US corn crop and the prospect of growing end stocks has finally hit home and the buyers have put up the “closed for business sign! We think not and suspect that some short covering rally will materialise before Friday’s report.
- In soybeans despite strong demand, particularly from China, it is difficult to argue against bearish fundamentals. We could be facing an increase of some 2 to 4 million mt in the US crop over the September USDA report, which was 85.7 million mt. Also, in S America the soybean outlook is certainly favourable right now with the possibility that early suggestions of a 10 million mt increase over the 2013 crop are likely to be exceeded if conditions do not deteriorate.
- Technical indicators are also looking far from bullish right now with some chartists becoming quite excited over the prospect for lower prices. Friday’s report, if it runs the way people are talking, I.e. bigger crops, it could be sufficient to trigger further technical selling.
- US corn was reported to be 73% harvested, above the trade estimate of 71% and up from 59% week on week. Soybeans were reported to be 86% harvested, close to the estimated 87%, and up from last week’s 77%.
- Egypt’s GASC issued a tender to purchase wheat for early Dec ’13 shipment, as expected, and results should be known by later tomorrow.