News that China was to purchase a further 336kt of US soybeans, some reports say 600kt, had little impact on a market set on profit taking. Early session gains in the bean pit gave away to selling late in the day, seeing Chicago soybeans close 5.25c/bu lower nearby. The late session decline in US soybeans may help explain why the Paris rapeseed contract closed higher, the Paris session closed by the time the sell off in Chicago beans took over.
Paris rapeseed was up E4.25/t in the Feb slot and +E6.75 in the May slot, very nice grains, but somewhat stunted by the higher AUD yet again. The day to day conversion comparison for Paris rapeseed shows potential AUD gains close to +AUD$2.75/t this morning. Winnipeg canola futures were of no help, that conversion down about half a dollar in AUD terms day to day. Malaysian palm oil fared better than expected, the market now having priced in the better ending stocks. Palm oil futures closing roughly +AUD$6.23/t.
The market saw the Venezuela situation as bearish crude oil, some of that sentiment spilling into other commodities. WTI crude oil futures fell US$1.35/b in the Feb slot, closing at US$56.98/b, obviously the softer crude oil market will result in lower fuel prices across the USA and Australia……………. I crack me up.
I guess the next thing to watch, that is not grain related, that has the potential to impact on the market is the developments in Iran. There are now reports of the police in some cities putting down their arms to join the protest movement. I’m no expert on Iran but I’m worried that this could end in the worst possible way for the protesters, I hope I’m wrong and this is the revolution some media is stating it to be.

Jordan picked up 60kt of wheat at US$260 CiF, offers ranged from US$260 to US$264.48/t. This is roughly equivalent to AUD$270 XF LPP, so obviously not going to be Aussie wheat. Comparing Black Sea FOB values it’s even cheap for Russian wheat but Ukraine wheat does work at current values. Current US values also work into this sale if needed, emphasising just how cheap US milling wheat is FOB Gulf these days. The seller, Buildcom, is Bulgarian.