Crude and Equities Under Pressure, A Potent Bearish Combo For Grains
A lower start is expected in all pits this morning, roughly 5-8 lower wheat, 4-6 corn and 10-15 beans. Crude oil and equity markets are under strong pressure this morning while the $ index is higher, a potent bearish combination for the grains.
Deliveries were 3700 wheat to Feb 27, 2300 corn to Feb 20, 2 meal to Dec 4 and 1700 oil to Feb 27. There were no bean deliveries again today. Dreyfus stopped 864 of the corn and Bunge put out 211 of the oil.
Talks are set to resume between the four main Argentine farmers unions and the government tomorrow afternoon. The supposed government plan to nationalize all grain trading in Argentina, both the domestic and export market, will be the focus of the talks if they even take place. Turmoil in Argentine grain trading could result from this government nationalization plan, shifting export business to the US. However, if Argentine farmers decide to sell the roughly 5 million tonnes of beans they are holding in the hope of higher prices later, this could put short term pressure on this pit, especially the nearby months. It is hard to know at this time how events will play out. Either way, traders will be watching developments closely in this situation.
Up to 1" of rain was scattered in Brazilian bean and corn growing areas over the weekend. More is forecast in the south the next 3 days, where it is still welcome. Mostly dry weather is forecast in the north this week, which is favorable for harvesting of corn and beans. It was dry over the weekend and continued mostly dry weather is forecast today in Argentina. Widespread rain is forecast Tue-Wed, .3-1.5", before dry weather returns the second half of the week. The rain over the next few days is very welcome, especially for beans.
The US southwest winter wheat belt was mostly dry over the weekend and more of the same is forecast this week. This is increasing stress on the wheat crop, which will soon start coming out of dormancy, increasing moisture needs sharply. The 6-10 outlook also calls for below normal rain. --Vic Lespinasse
Deliveries were 3700 wheat to Feb 27, 2300 corn to Feb 20, 2 meal to Dec 4 and 1700 oil to Feb 27. There were no bean deliveries again today. Dreyfus stopped 864 of the corn and Bunge put out 211 of the oil.
Talks are set to resume between the four main Argentine farmers unions and the government tomorrow afternoon. The supposed government plan to nationalize all grain trading in Argentina, both the domestic and export market, will be the focus of the talks if they even take place. Turmoil in Argentine grain trading could result from this government nationalization plan, shifting export business to the US. However, if Argentine farmers decide to sell the roughly 5 million tonnes of beans they are holding in the hope of higher prices later, this could put short term pressure on this pit, especially the nearby months. It is hard to know at this time how events will play out. Either way, traders will be watching developments closely in this situation.
Up to 1" of rain was scattered in Brazilian bean and corn growing areas over the weekend. More is forecast in the south the next 3 days, where it is still welcome. Mostly dry weather is forecast in the north this week, which is favorable for harvesting of corn and beans. It was dry over the weekend and continued mostly dry weather is forecast today in Argentina. Widespread rain is forecast Tue-Wed, .3-1.5", before dry weather returns the second half of the week. The rain over the next few days is very welcome, especially for beans.
The US southwest winter wheat belt was mostly dry over the weekend and more of the same is forecast this week. This is increasing stress on the wheat crop, which will soon start coming out of dormancy, increasing moisture needs sharply. The 6-10 outlook also calls for below normal rain. --Vic Lespinasse
posted by InsightPublishing at
8:26 AM
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