Fund buying supports prices

[CRM AgriCommodities]

Cereals

• EU grains found support following MARS’ EU crop estimates which were released this morning and on fund short covering.
• MARS lowered their estimate for EU maize yields from 6.99T/ha to 6.91T/ha, whilst raising their estimate for soft wheat to 5.94T/ha from 5.86T/ha.
• Current wet condition across Northern Europe is seen as detrimental for winter plantings (see map).
• Funds are currently at record short levels for this time of the year on the corn market, which increases the chance of buyback related rallies.
• Egypt announced today that they have enough wheat stocks to last for the next 4 months.
• The corn belt looks set to be dry over the next few weeks which will help as the corn harvest rattles on.

Oilseeds

• Sellers benefitted from higher oilseeds prices today as OSR, palm and soyoil found bids.
• US soybean harvest continues to make progress currently at around 65%, whilst weather conditions for South American plantings are and will remain under close watch by the market during plantings.
• La Nina continues to develop which is particularly relevant for Southern Hemisphere yield prospects.

Chart of the Day – MARS crop watch

Chart of the days – CBOT fund positions

Prices