- At long last we have seen Chinese cancellation of soybean cargoes amounting to some 245.000 mt for 2013/14. Soybean markets shed value on the news, although with half an hour to go, old crop prices are still in positive territory. Farm selling and fund buying is still evident, not only in soybeans, but also in the grains. It appears that in the wake of the Ukraine crisis managed money is moving away from equity markets into (defensive?) commodities, and fund positions are likely to reflect this in the next published figures on Friday evening (UK time).
- The Ukraine situation offers little in the way of fresh news, and markets appear to have digested the news, and are looking now for fresh input. Russian troops appear to be settled in Crimea, and resolved to remain there until Ukraine leadership voting is completed in May. Political posturing, bluff and bluster aside, it seems that little is about to change in the short term.
- In other news, we hear that China is about to approve the corn GM event, MIR 162, as they have received appropriate documentation, or is that because they have rejected/cancelled sufficient to offset their improved domestic production – or is our underlying cynicism rising to the surface yet again?
- Reuters reported that Egypt is to “review” its 13% moisture limit, which recently (effectively) excluded French supplies from being included from the sat two tenders. Little effect is anticipated in old crop trade where we may see one more tender before imports are completed.