Overnight developments: grains mixed, crude lower
Soybeans are around 4-6c higher as at 8.30am BST on ideas that forecasts for above normal temperature and below normal precipitation in parts of the U.S. Midwest next week will stress the crop.
Corn is lower depite the weather forecast as traders focus on reduced ethanol demand in the light of yesterdays surprisingly high crude oil and gasoline stocks data. Corn stands around 6c lower this morning.
Nearby wheat is also around 6c easier, following corn, after climbing yesterday on speculation that a weak dollar will boost US exports. Although Iraq and Japan are both in the market at the moment, this is business that the US would normally get anyway. Although US origin wheat was an option in an Egyptian tender earlier in the week, this wheat will most likely come from Ukraine or Russia, a trader said.
Crude fell under $134/barrel this morning as the trade continues to digest yesterday's astonishing stocks numbers.
"Sentiment is getting more bearish now," said Tetsu Emori, fund manager at Astmax Ltd. in Tokyo. "Investors were focusing on bullish factors last week, but now the market is beholden by bearish factors of weak demand, slowing economy and rising inventories."
Crude oil for August delivery fell as much as $1.20, or 0.9 percent, to $133.40 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $134.10 at 8:36 a.m. London time. Futures are up 81 percent from a year ago.
Yesterday, oil fell $4.14, or 3 percent, to settle at $134.60 a barrel. Prices dropped 7.3 percent in the past two days, the biggest two-day decline since January 2007.
"U.S. drivers continue to curb travel whenever possible with retail gasoline prices above $4 a gallon," Harry Tchilinguirian, a senior oil market analyst at BNP Paribas SA in London, said in a report. "Prospects for the U.S. economy and gasoline demand go hand in hand."
Corn is lower depite the weather forecast as traders focus on reduced ethanol demand in the light of yesterdays surprisingly high crude oil and gasoline stocks data. Corn stands around 6c lower this morning.
Nearby wheat is also around 6c easier, following corn, after climbing yesterday on speculation that a weak dollar will boost US exports. Although Iraq and Japan are both in the market at the moment, this is business that the US would normally get anyway. Although US origin wheat was an option in an Egyptian tender earlier in the week, this wheat will most likely come from Ukraine or Russia, a trader said.
Crude fell under $134/barrel this morning as the trade continues to digest yesterday's astonishing stocks numbers.
"Sentiment is getting more bearish now," said Tetsu Emori, fund manager at Astmax Ltd. in Tokyo. "Investors were focusing on bullish factors last week, but now the market is beholden by bearish factors of weak demand, slowing economy and rising inventories."
Crude oil for August delivery fell as much as $1.20, or 0.9 percent, to $133.40 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $134.10 at 8:36 a.m. London time. Futures are up 81 percent from a year ago.
Yesterday, oil fell $4.14, or 3 percent, to settle at $134.60 a barrel. Prices dropped 7.3 percent in the past two days, the biggest two-day decline since January 2007.
"U.S. drivers continue to curb travel whenever possible with retail gasoline prices above $4 a gallon," Harry Tchilinguirian, a senior oil market analyst at BNP Paribas SA in London, said in a report. "Prospects for the U.S. economy and gasoline demand go hand in hand."
