September futures rolled off the board at Chicago with December now becoming the nearby contract. Oil took the spot light and surging energy prices created some spill over buying in the grains.
Oil was higher on multiple attacks on the world’s largest oil production facility in Abqaiq, Saudi Arabia. According to the media Yemenis rebels (using Iranian weapons) claimed responsibility. Iran say they have nothing to do with it, the US are happy to bomb someone, anyone. The incident is said to have the potential to cut world oil supplies by around 5%. The US claim satellite data shows the attacks were not implemented by the Yemenis and appear to blaming Iran. Iran say they have nothing to do with it. The US are happy to bomb someone, anyone. The attacks were carried out by 10 drones according to the Houthi rebels.
Oil prices jumped 20% before falling back, the biggest one day move since the Gulf War in 1991. The rally in oil created spill over buying in grains with healthy gains in EU rapeseed futures and ICE canola futures.
Wheat futures were firmer on the back of spill over buying but also on good weekly US export sales of about 440kt. News of a 255kt soybean sale to China was also beneficial to soybeans futures at Chicago.
Oil politics are likely to dominate the week so expect the unexpected.