The US markets opened in good old traditional “turnaround” style as befits a Tuesday. However gains have been limited and the market feels as if it is struggling to hold onto gains as bearish traders cap rallies by selling strength.

We feel that it is possible we may yet get a bullish surprise, particularly on corn, which will impact wheat by association, and higher priced corn will lead to feeding of wheat. Russian domestic grain prices continue to hit record highs and EU prices are rising as supplies start to tighten.

Without doubt there is a massive emphasis being placed upon sizeable S American crops to relieve the tight global S&D position; we question if this is possible, and if not – where do prices go next?