Prices 28/12/16

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Chicago soybean futures lead grain higher resulting in good improvements in corn and wheat futures too.
Weekend rainfall missed much of the Buenos Aires region of Argentina, this is soybean central for Argentina and dry conditions now may prune yields. I’m not sure if the dry spell is as damaging as what the futures market might lead you to believe though as 7 day precipitation records for much of Buenos Aeries and Cordoba shows totals above 60mills. The main driver is probably the outlook which shows little rain is expected across The Pampas over the next couple of weeks. Cordoba is expected to see more rain so corn may find it harder to move higher than soybeans but it’s definitely worth keeping an eye on.

Soybeans rallied around 25c/bu (AUD$12.60). Beans also found support from improved rapeseed values at Paris and better palm oil numbers. Also supportive is the reversal of fund shorts at Chicago.
Wheat is enjoying the ride higher on the back of soybeans, there is nothing that would bull the wheat market by this amount, yes US weekly exports were at the higher end of expectations but with the USD firmer against all the majors the move higher in wheat is working against the US keeping the average weekly sales pace up. I’m not sure if local merchants will take a lot of notice of this move in wheat and increase local bids this close to the end of the month.

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