Grains Likely to Follow External Influences & Turn Around Tuesday Expectations
A slightly higher start is expected this morning due to higher crude oil and equity markets as well as a lower $, a friendly combination for the grains. We were sharply lower in the grains yesterday and some expect a "turn-a-round Tuesday" pattern today with the grains rebounding. That could turn out to be the case but we will likely continue following the outside markets. If they continue pointing higher the grains will also be higher regardless of "turn-a-round Tuesday".
Deliveries were 3500 wheat to March 2, 1000 corn to Feb 25, 1 meal to Dec 30 and 1700 oil to March 2 with no bean deliveries. Dreyfus stopped 54 corn today after taking over 800 yesterday.
The European Union slapped an import tariff on US biodiesel imports, which is negative for our bean oil market.
Talks between the Argentine government and the four main farmers unions resume today with the government's plan to nationalize grain trading in Argentina the main talking point. Depending on how the talks go they could influence our market, especially beans, so traders will follow developments in Argentina closely.
China's Ministry of Agriculture declared the drought emergency in the winter wheat belt to be over, due to much improved weather recently in the form of increased precipitation.
Scattered, welcome rain continues in southern Brazil with dry weather elsewhere. More beneficial rain is forecast in southern Brazil this week but amounts should be light. Northern Brazil will enjoy good harvesting weather for corn and beans the next 5 days or so.
The US southwest winter wheat belt will stay dry with above normal temps the rest of the week although there is some light precipitation in the forecast this weekend. The longer we go without a widespread, soaking rain, the greater the stress on the crop as it starts coming out of its winter dormancy.
Keep watching the triumvirate for direction in the grains today: Crude oil, the $ and the equity markets.-- Vic Lespinasse
Deliveries were 3500 wheat to March 2, 1000 corn to Feb 25, 1 meal to Dec 30 and 1700 oil to March 2 with no bean deliveries. Dreyfus stopped 54 corn today after taking over 800 yesterday.
The European Union slapped an import tariff on US biodiesel imports, which is negative for our bean oil market.
Talks between the Argentine government and the four main farmers unions resume today with the government's plan to nationalize grain trading in Argentina the main talking point. Depending on how the talks go they could influence our market, especially beans, so traders will follow developments in Argentina closely.
China's Ministry of Agriculture declared the drought emergency in the winter wheat belt to be over, due to much improved weather recently in the form of increased precipitation.
Scattered, welcome rain continues in southern Brazil with dry weather elsewhere. More beneficial rain is forecast in southern Brazil this week but amounts should be light. Northern Brazil will enjoy good harvesting weather for corn and beans the next 5 days or so.
The US southwest winter wheat belt will stay dry with above normal temps the rest of the week although there is some light precipitation in the forecast this weekend. The longer we go without a widespread, soaking rain, the greater the stress on the crop as it starts coming out of its winter dormancy.
Keep watching the triumvirate for direction in the grains today: Crude oil, the $ and the equity markets.-- Vic Lespinasse
posted by InsightPublishing at
8:31 AM
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