Prices 7/12/18

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Grains were lower on technical trade and outside markets. There is also some doubt the Chinese will honour their comments at the G20 after Huawei’s CFO was arrested in Canada for breach of sanctions against Iran. Any further details on the arrest have been censored. The fact the arrest happened in Vancouver have a few analyst expecting to see Canada drawn into further trade disputes with China. Huawei have been accused of shipping telecommunications devices from the US to countries such as Iran from as early as 2016 and was one of the triggers of the trade disputes between the US and China.
The soft red wheat CME March contract is currently overbought so one might expect the market to respond to any type of negative news quiet quickly leading up to next week’s USDA report.

Egypt picked up 350kt of wheat overnight, the lions share coming from Russia and the total parcel originating in the Black Sea. Values were up a couple of dollars over the last tender. Ocean freight had fallen a little though making the landed price almost comparable.

ICE canola futures got a hand from StatsCan overnight. Total canola production was reduced 500kt lower to 20.3mt. This reduction was a little larger than the punters had guessed. Wheat production estimates were increased to 31.8mt a 6% increase over 2017. Durum production was pegged at 5.745mt compared to 4.962mt last year.

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