Prices 17/2/17

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US soybeans lead grain futures in the States higher yesterday and lower today. Wheat futures in the US initially had soft wheat firmer with spring wheat lower. The momentum in the soft wheat contract turned for the worse later in the session resulting in losses by the close while Minneapolis never took a step forward and shed a massive 17 3/4 cents / bu ($8.50) on the nearby contract before closing the day out. Better than expected weekly export sales out of the US helped soft wheat initially triggering technical buying but this became unsustainable as profit taking took over prior to the close.
The fundamental outlook for wheat continues to be more bearish than bullish long term as massive global stock piles dominate the data sheets. Look for continued volatility into the northern hemisphere spring but without any major issues we should not expect to see the $100 / tonne recovery we are all praying for.

The weaker close in US soybeans was brought about by two things, a better weather map for Argentina and the realisation that rain does make grain. Although many parts of Argentina suffered heavy rainfall and crop losses in some areas the fields unaffected by flooding have enjoyed an almost perfect season and good soil moisture is encouraging some good yields. The weaker bean market as usual rolled through the canola pits in Canada and Paris with weaker closes at both exchanges.

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