- There is a distinct lack of fresh fundamental news today, so we will be brief! Soybeans have led the markets lower presumably on the back of traditional seasonal demand tailing off and also on favourable S American weather forecasts tat stretch into the latter part of December. Of note is that fund buying in wheat appears to be tailing off.
- Crude oil was losing more value at midday and gold was also trading lower amid commodity indices all showing lower numbers.The US$ hit fresh highs once again in what seems like an unshakeable trend right now.
- The “head and shoulders” chart formation in soybeans and meal is being tested today and a close below the “neckline (inline with today’s lows) would put significant pressure on markets in coming days. LATE NOTE – CBOT closed below the neckline – look for lower soy and products prices in coming days.
- From a physical grain perspective the cash markets in Europe and Black Sea present an interesting perspective which does not fully correlate with MATIF or CBOT wheat futures. Be cautious in the run up to year end, all may not be as it seems.