Cereals consolidate after jumping into 2017

[CRM AgriCommodities]

Cereals:

• US weekly corn export inspections 636,684T - USDA
• US weekly wheat exports inspections 395,417T - USDA
• A rebalancing of index funds next week should see a large amount of wheat and corn contracts bought on US markets.
• Funds are currently buying grains reducing their short positions whilst selling some of the long positions held on soybeans/ meal.
• Cooler conditions in western Europe are expected to warm up later this week.

Oilseeds

• Chinese crush margins continue to strengthen to near 3 year highs, supportive for soybean prices and exports.
• Rainfall across Brazil this week is expected to benefit soybeans as harvest begins with expected production remaining over 100MT.
• OSR prices were supported by a boost to palm oil.

Of Interest

• All eyes remain focused on the US where president elect Donald Trump will be sworn in later this month.
• China have apparently opened a rail link to the UK of 12,000KM according to government website.

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