- Chicago markets appeared unable to sustain early gains and what looked to be a developing overnight rally. Outside markets were a touch negative with crude some $0.70 lower and the US$ a touch higher. Russian and Brazilian currencies hover around multi-year lows and Monday night’s crop condition ratings did little to encourage the bulls in advance of Friday’s report.
- It is rumoured that Chinese soybean crushers are struggling for credit lines, not the first time we have heard this, but it is weighing on traders’ views on imports looking forward.
- A wet pattern is forecast for S and C Brazil in the next ten days. Unlike last year, it is not expected that plantings will be delayed due to dryness, and normally seeding starts 15 September. Activity is expected to be brisk in the second half of the month.
- Egypt has announced it will extend its wheat moisture level into spring 2016, which will give greater opportunities to vendors in its tenders. EU origins, particularly France, are expected to see better volume trade as a result, however we would expect to see Black Sea competitiveness override, at least in the next month or so.