- Egypt’s GASC has secured 240,000 mt of wheat for April shipment with France picking up half the volume and the balance was split between Romania and Ukraine. The price paid was reported to be $188.86 basis C&F, which is just over $4.00/mt above their last tender on 2 March. Offers were limited to six amid ongoing conflicting signals over ergot content.
- Chicago markets are struggling once again for fresh news and midday saw minimal change, and the run up to the close tonight is little different. Wheat has failed to trade above the week’s high and flirted with 50 day average prices, and has shed 4 cents. Soybeans are all but unchanged as the Brazilian Real plunges and a 100,000 mt old crop sale is announced – mixed inputs resulting in stagnant prices. Recent firming in the Real has pushed trade towards the US but the recent downturn will likely trigger Brazilian farmers into making further sales. However, as Chinese crush margins erode still further demand from China for further soybean supplies remains muted at best.
- US crude oil stocks, as recently suggested, reached a new record volume as of data based upon last Friday, the figure 1,218 million barrels, is 6% above last year but prices rose $1.50/barrel as expected stocks levels were higher.
- Neither the bulls or the bears have a hols on this market right now, the upcoming US stocks and seedings report may provide some pressure one way or the other. New crop corn and soybean prices justify some form of premium given acreage uncertainty and weather conditions at planting and establishment, and at this time the wheat premium over EU and Black Sea has been very reluctant to erode amid uncertainty over W Plains moisture. However, the ongoing big picture of large global stocks continues to dominate and lasting rallies look doomed to failure unless the weather chooses to intervene.