Prices 6/3/19

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In the USA wheat and corn futures were generally higher on technical buying. China trade talks continue to be the driver but in all honesty if they came to an agreement on anything in the next 12 months it might be considered a win. A fundamental trader would be better tested working on S&D data and at the moment the lagging US exports is weighing heavily on that spreadsheet.
After a week of lower closes wheat finally clawed back some points at Chicago. We have a WASDE out on Friday US time, one can only hope the trade have forced this market lower enough to cover the predicted increase in US wheat stocks. Then again it might just be a sell the rumour / buy the fact market, who knows.

Looking at the 30 day anomaly map it shows that Ukraine and southern Russia are both a little drier than normal for this time of year. Temperatures have also been a little warmer than usual, unlike the USA which is still seeing snow fall in many locations. The forecast is predicting a few light showers across the Black Soil regions of Russia and parts of eastern Ukraine for the week ahead but if Russia is to produce the 78mt they have currently predicted is on the cards they will need a good spring.

Algeria are in the market for 50kt of optional origin durum wheat. The results of the Saudi wheat tender shows a final purchase tonnage of 625kt at an average price of US$248.16 / tonne for April. It is said that German wheat is the most likely supply point.

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