- Location
- UK
Cereals
Oilseeds
Chart of the day#2: South America Weather forecast
Futures & Options prices
- Wheat prices were led lower by CBOT as it closed in on the key $4/bu level as longs liquidated their positions ahead of tomorrow’s December USDA report.
- EU and UK wheat prices fell victim to long liquidation as traders focused in on the report. However, the losses were limited with France set to load its first 55KT vessel of hard wheat to Saudi Arabia.
- Crop prospect in Argentina and Brazil also improved as the forecast showed better chances of rains over the next two weeks although risks in South America are still very much present if rains do not materialise. The coming week’s forecasts will, therefore, play an important role in trade positioning.
- Private US exporters reported the flash export sales of 110KT of corn for delivery to Mexico during the 2017/18 marketing year. It was not enough to support CBOT corn which posted a fresh contract low on the Mar-18 expiry.
Oilseeds
- Malaysian palm prices weakened on building supplies and ahead of tomorrow’s MPOB report.
- Rapeseed came under pressure from weaker veg oils and improved forecasts for South America. Feb-18 Euronext rapeseed contract settled to its lowest in 3 months.
- The trade expects CONAB to increase Brazil’s soybean crop to 109-110MT in tomorrow’s estimates release.
- US exported 132KT of soybeans to unknown destinations.
Chart of the day#2: South America Weather forecast
Futures & Options prices