- Russia’s Deputy Prime Minister Dvorkovich has today said that the wheat export tariff can be removed before July 1st, and the latest update suggests that a mid-May date could well be agreed upon. Grain brokers were immediately attempting to drum up business as one would expect from the broking fraternity!
- CBOT markets opened somewhat softer but a fire at the Dreyfus Argentine grain export facility and a threatened Argentine crush strike have both conspired to put some support into the market.
- Argentine farmers are, at last, moving volume soybeans as harvest passes the 60% mark utilising delayed pricing options. The methodology allows soybeans to move into the supply chain and be utilised, and be priced at a much later date.This has appeal to farmers as the physical storage risk in farm bags is much higher that the paper risk utilising the option market. This is actually helping to push physical movement in Argentina right now.
- It is worth noting that the Brazilian cash market saw FOB basis falling on the back of volume selling whilst Argentine levels held steady. Consequently, Argentina is now the world’s lowest cost seller by some way and S American beans are priced below US Gulf well into September.
- Other fresh news is limited.