- Location
- UK
Cereals
- The bearish impact of the USDA report last week continued to be felt throughout the grains and oilseeds markets during Monday's trade.
- Funds cut their long position in corn and wheat according to the most recent report from the CFTC indicating that speculators are turning less bullish after the USDA report.
- Many market participants have questioned how realistic the USDA figures are in light of the recent weather. The upcoming Pro Farmer crop tour is expected to shed more light on US crops.
- Rainfall is in the forecast to provide some relief to crops in the Midwest which added to the sell-off today.
- EU wheat prices followed US markets lower with LIFFE also under pressure and Nov-17 trading to 3-month lows.
- The large yields coming out of Russia continue to put Russian prices under pressure, who are major exporter at this time of year and adding to the pressure on global markets.
- Saudi Arabia bought 660KT of barley in a tender.
Oilseeds
- Oilseeds did not avoid today's sell off across the Ag markets, with soybeans posting double digit losses and OSR falling over €5/T.
- The general weakness of Ag markets with follow through from the USDA report and lower veg oil markets all added to the pressure.
- Further pressure came from Palm oil as a hike in Indian import taxes provided enough potential for demand to be limited as a result.
Chart of the Day #1: Managed money positions CBOT Corn
Chart of the Day #2: Managed money positions CBOT Wheat
Chart of the Day #3: Managed money positions CBOT Soybeans
Futures & Options prices
