Prices 6/7/16

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If you were long US soybean futures last night you would have been wishing the long weekend never ended, your hangover was only just starting. Soybeans lost 5.3% in overnight trade, new crop beans lost up to 60.25c/bu, that’s almost AUD$30 / tonne. With the US summer thus far being almost ideal and the short term outlook also favourable, as with wheat, the USA looks set for a very good soybean and corn harvest in 2016.
Corn futures, still reeling from the June 30th acres shock was thrown in the same pond as soybeans, a deep, cold, swiftly moving pond and promptly closed 9c/bu lower. It was thought the funds had built a small long in corn and beans and last night was the first stage of liquidating that long.
The punters were expecting to see a slight drop in the weekly corn condition ratings out after the close. They’ll be disappointed as the G/E rating remained unchanged at 75%. Soybeans were back 2% though so maybe that will slow the rush to the door tonight.
As you would expect the sharply lower soybean market spilled over into canola and rapeseed futures which both closed lower.
Wheat somehow avoided the carnage, maybe it was the better than expected 500kt of weekly US export sales. Some think US wheat is finally cheap enough to compete on the world stage. We’ll see what Russia has to say about that in the coming weeks. In both Russia and the Ukraine early reports show yields are well above last year.

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