All eyes remain on corn futures at Chicago as the selloff continued overnight. The demise in corn prices wasn’t isolated to futures values in the US with cash basis also slipping between 1 – 10c/bu. The move in cash does tend to indicate that the cash market is not as volatile as the futures market might be trying to suggest it should be though.
Corn basis in the US continues to be variable depending on location and the impact the poor sowing conditions had in that area.
I was reading a USDA advisory note yesterday that explained the methodology behind the WASDE data and the normal data proofing procedures and how accurate the data is compared to final estimates. In simple terms the USDA basically explained that the likelihood of the data being accurate prior to September or October was unlikely.
So I guess there is still plenty of room for volatility left at the USDA yet.
The punters were happy to hear the Trump administration had decided to delay the implementation of a 10% tariff on a number of electrical goods leading up to Christmas. The trade took it as a positive and ran with it in the soybean pit because………….because traders.
The positive close in Chicago bean futures didn’t roll through to ICE canola which shed C$3.50 on the nearby. An increase in the AUD/CAD conversion will put added pressure on canola values here today. The drop in ICE futures and the currency move combined adds up to a potential fall of just under $7.00. Paris rapeseed was firmer across the board on lower EU production estimates, let’s see who wins.