US futures markets were generally flat with a little upside in wheat.
Strength was garnered from further reductions in Argentina, this time corn production was cut, shedding 2mt from 34mt down to 32mt. It will be interesting to see what impact this has on prices tonight if US exports are healthy. Dalian corn futures were generally flat to lower closing the session with May posted at AUD$370 / tonne.
Soybeans were flat with better than expected early yields in Brazil and some talk of possible trade wars between US & China keeping the market on edge. Trade wars with China, well we’ve seen the impact the “trade war” with China had on American exports of sorghum, hardly any. It’s hard not to get caught up in all the drama and just concentrate on the actual data some days. It may take a few more weeks and the finish of the S.American soybean harvest in order to get a reasonable handle on the oilseed market at an international level this year. The US will finish their soybean plant around mid June and the Canadians should have their canola sown by then as well.
News that India are expected to remain a net importer of wheat put a smile on a few faces and egg on others. It was only a couple of weeks ago Indian officials were talking of a wheat crop as large as 100mt, all of a sudden we are hearing reports it could be closer to 90mt, most think 92mt – 94mt. Almost makes you wonder if their chickpea estimate isn’t a little on the fat side too.