Global futures markets were a sea of red last night, even NCDEX chickpea futures in India slipped AUD$38 / tonne. Wall St didn’t offer a safe haven with the Dow slipping 260 points.
The catalyst was the kinder weather forecast for the USA. A round of profit taking then erupted pushing soybeans lower late in the session. Initially the session at Chicago was showing promise but that all came to an abrupt halt in the afternoon. A kind outlook for soybeans is also a kind outlook for corn, thus corn was also sharply lower. Wheat was somewhat of a casualty, collateral damage, a bit like my hot water heater at 2am last night when it decided to rupture, flooding the side yard. Just like my side yard some winter wheat fields ready to harvest in the US are too suffering from excessive water.
A quick look at the weather forecast shows heavy rain across the corn and soybean producing areas in the USA. Iowa, Illinois, Indiana and Ohio could see 4″ – 6″ of rain over the next 7 days. The map also showed a good chance of some storms across the driest parts of the spring wheat belt in the US and Canada. Consequently smashing spring wheat futures at Minneapolis out of the park. The nearby futures contract shed over 55c/bu. It should be noted that MGEX cash was actually 7c/bu higher, at 986.25c/bu, but since when has a futures market actually indicated the value of the underlying commodity (sarcasm guys, or is it).
US crop progress report was out after the close. Texas sorghum 46% coloured and rated 70% G/E. Winter wheat 45% harvested, Kansas 62%, 10% below their average. Spring wheat rating now just 16% (20% LW) G/E compared to last year at 70%, 50% now rated poor / very poor.