Chicago closing comments
After yet another volatile session grain & oilseed futures mostly bounced from recent steep losses to close with some decent gains on Tuesday night.
Wheat was the main loser, closing with further substantial losses, May CBOT ending 34c lower with it's first close below $9 since Jan 10.
There is a growing feeling that wheat is suddenly the weakest link of the complex with a realisation that it is much more of a global crop than soy/corn, and that in many cases (unlike soy/corn) the crop is already "in the ground" based on substantially higher prices several months ago.
The outlook looks conducive to a great crop as reported here many times recently with substantial gains in Europe, Australia, America & elsewhere.
Soy gained on speculation that Monday's planting estimates were likely overstated and that therefore recent heavy declines are overdone.
Corn posted only modest gains, if soy is overstated then corn must be understated was the theory there.
It's still very early days in the US, again as mentioned recently the USDA have an inclination to understate corn plantings by around 1.5m acres in recent years in the March report.
Wheat was the main loser, closing with further substantial losses, May CBOT ending 34c lower with it's first close below $9 since Jan 10.
There is a growing feeling that wheat is suddenly the weakest link of the complex with a realisation that it is much more of a global crop than soy/corn, and that in many cases (unlike soy/corn) the crop is already "in the ground" based on substantially higher prices several months ago.
The outlook looks conducive to a great crop as reported here many times recently with substantial gains in Europe, Australia, America & elsewhere.
Soy gained on speculation that Monday's planting estimates were likely overstated and that therefore recent heavy declines are overdone.
Corn posted only modest gains, if soy is overstated then corn must be understated was the theory there.
It's still very early days in the US, again as mentioned recently the USDA have an inclination to understate corn plantings by around 1.5m acres in recent years in the March report.
