- Further fund short covering in corn and wheat offered support whilst a slowdown in fund demand across the soybean complex had the opposite effect. It appears the US farmer is a better seller of old crop corn and S America is active in October fob soybeans, effectively stealing the US “gut slot” of harvest. The record large S American soybean crop is narrowing the US window of opportunity to export. This could become a major issue following the June crop report.
- The US$ surged again to sharp gains as the market continued to worry over another “let’s kick the tin along the road again”by Greece. The Greek deal (or no deal) and comments from the US Federal Reserve that two interest rate hikes are indeed possible in 2015 has set the stage well and truly for the US$ rally to persist – likely for the remainder of the year.
- US weather patterns look more normal with another chance of C and E Midwest rain later in the week before a cooler and drier outlook develops. The outlook for rain moves south early next week which would be ideal. The critical corn pollination weather looks close to perfect, cool with showers, rather than any prolonged heat which is always so damaging to overall output.