- One commentator described EU markets today as “stunningly boring”, November options expiring with a whimper and a flat €. This makes market commentary somewhat difficult!
- Recent rains in the US have slowed harvest, as we reported yesterday, and strong nearby demand from crushers and exporters alike is keeping cash basis firm, which has in turn lent some support to futures markets. Early fund support has slowed this afternoon.
- S American weather patterns show a move towards the wet season commencing next week, seasonally normal, with a wetter pattern unfolding into early November.
- Fund short covering has been the feature in the last few days as equity markets decline and fund managers take risk off the table. Technical pictures suggest that we may well have seen a secondary seasonal high today with limited corn and soybean price upside going forward – as always, time will tell. Our view continues to be one of “sell this rally” and we look for a resumption of the bear market before long.