- The morning saw wheat catching bids on the back of fresh fund short covering whilst corn and soybeans eased a touch on solid crop condition ratings (see above) as well as improved Midwest rain chances in the coming week.
- The rally in wheat has little substance as far as fundamentals are concerned, it all appears to be driven by technicals and fund short covering.
- The longs fund positions in corn and soybeans require an input from US weather if the bullish momentum is to be maintained.
- Russia’s IKAR raised total grain output estimate to 109 million mt, which includes 64.5 million mt of wheat. Note that both figures, if achieved, will be record large.
- The debate over US weather rages on, but there is little question right now that the flow of Gulf moisture to the north will improve next week allowing for a warm/wetter period across the Central US. Immature corn/soybean crops are rooting down, but rains will be required in the last week of June for high yield potential to be maintained. The frost in S Brazil has no impact on their mature corn production.