US grain futures were flat to firmer overnight. The punters look likely to have used the dip in row crop values after the USDA report to get a few shorts covered thus rallying some values in the process, we’re not all about to get rich on the back of this rally though, well not unless you punted US bean futures all the way down to Tuesdays low.
There’s also volume being created by index funds rolling out of May contracts and into outer months.
A wet outlook for the US Midwest also had a few jittery traders worrying about planting delays but history tells us that rain makes grain and unless we are having this conversation in early June it should really be of little interest in fundamental analysis. The same rain is only making the winter wheat crop better, we should probably expect to see some improvement in US weekly winter wheat crop ratings in next week’s report.
Falls of 10-35mm of rain across central Ukraine has helped alleviate some of the recent dry. With winter wheat in the vegetative stage the rain will make a big difference and is very timely. Southern Russia also saw some reasonable if not patchy falls. The slow snow melt is also assisting things but is slowing field work in some locations along the Volga Valley.
Parts of western Europe continue to be dry. Warm weather is promoting good growth but without some decent rain in the short term this growth will come to little improvements in the bin. Italy saw a few showers that should help get spring planting complete.