24 September 2012

  • A further day of price declines across the soy complex, corn and wheat as fund and producer hedge selling continues to pressure prices.
  • Volume trade appears to remain reasonably high.
  • US soy and corn harvest pace continues well.
  • Soybean yields contain conflicting data with both better than expected and disappointing figures. Next week should provide more definitive data when a greater acreage is harvested.
  • US export demand is being stimulated by the current price decline – a position which the S&D can not afford.
  • We would expect to see forthcoming wheat tenders featuring EU and US supplies in the near future as other origins move upwards in price.
  • India raising concerns over rising prices and could potentially  restrict export activity.
  • Australian wheat crops remain pressured by continued dry conditions.
  • Early Argentine wheat yields are reported to be disappointing.
  • Given the dependence of global wheat markets on international trade the news from Australia, Argentina and India does not look good for the balance sheet.