- Early gains in Monday’s CBOT trade have given way to lower prices with under an hour of trade left. Soybeans have paved the way lower as trade disappointment emerged over daily sales announcements that failed to live up to China’s promised 13.2 million mt promised purchases from the US.
- Outside markets have also eased with crude oil shedding $1.30/barrel and the US’s DOW 260 points lower at midday.
- US cash soybean basis has eased as harvest pace picks up and yield estimates continue to exceed expectations. Corn cash basis has generally matched up to prior years and held up despite soybean’s decline.
- Soybean sales out of Brazil are slowing rapidly and will now permit the US to take more of the centre stage in the coming months despite suggestions that S American offers will persist into early 2016. We start the week with US corn and wheat at the head of the “most expensive” list, however, after this week’s stocks report (Wednesday) markets will return their focus back to weekly export sales.
- The latest weather updates have added some potentially heavy rainfall to Central and Volga regions of Russia whilst maintaining dryness across Ukraine and S Russia. S Russia is the key winter wheat region and weather premium will remain in place until we see higher precipitation in the forecasts.