- Today, albeit in a holiday shortened week, saw markets in Chicago display some significant losses on the first day of the new year. The soybean complex saw soybeans lose up to 1.9%, or $0.25/bu, and soybean meal in the front month drop over 3.1%, $13.60/ton although these closing levels were a recovery from the lows of the session.
- Improved S American weather and weak technical signals both triggered the selling. Mar ’14 soybeans now look set to test $12.56/bu and possibly $12.33 in the run up to the January USDA report. Mar ’14 wheat closed below the psychologically important $6.00/bu level although corn held $4.20/bu. The outlook for wheat, following its lower close, also suggests further bearishness in coming sessions.
- China’s Min of Ag has reported an excellent start to their wheat growing season, supposedly the best in the last eight years. The good start is expected to be tempered slightly by warmer than average temperatures and lower rainfall in key producing regions. Planting is all but complete with acreages reported to be similar to, or greater than, last year.
- Finally, Egypt’s GASC has once again returned to the wheat tender market with two new tenders, shipment in late Jan ’14 and early Feb ’14. Results are expected to be known tomorrow (Friday). A slight change to their Russian terms on this occasion will permit offers down to 55,000 mt, as opposed the usual 60,000 mt cargo limit which they usually insist upon.