Overnight markets higher on weaker dollar
The overnight eCBOT grains markets are higher this morning after the dollar declined to $1.4725 from yesterday's euro highs of $1.4571, it's strongest since Feb 14.
Firmer crude oil prices are also supporting the market this morning, with Tropical Storm Gustav forecast to reach hurricane status threatening crude supplies in the Gulf of Mexico.
Dryness in South America, Argentina in particular, and a campaign to end farming on deforested Amazon land is also supportive this morning.
Certainly wheat plantings in Argentina are seen sharply lower this season (harvest starts December) on a combination of dryness and a farmer backlash to the long running dispute with the government.
There was a general reluctance to plant wheat this season after the government last year switched off the export licences to protect domestic supplies for "the people."
As Argentina consumes very little soybeans domestically, now that the recent dispute over taxes appears to have been sorted, soybeans present a more attractive planting proposition as the government is less likely to put a block on exports of soybeans.
Argy wheat output is expected around 3mmt lower this season to around 12.5mmt.
At 9am London time soybeans were around 12c higher, with corn up around 5c and wheat up 1/4 to 3/4c. The pound is around $1.8450 having dipped below $1.8330 at one point yesterday.
Firmer crude oil prices are also supporting the market this morning, with Tropical Storm Gustav forecast to reach hurricane status threatening crude supplies in the Gulf of Mexico.
Dryness in South America, Argentina in particular, and a campaign to end farming on deforested Amazon land is also supportive this morning.
Certainly wheat plantings in Argentina are seen sharply lower this season (harvest starts December) on a combination of dryness and a farmer backlash to the long running dispute with the government.
There was a general reluctance to plant wheat this season after the government last year switched off the export licences to protect domestic supplies for "the people."
As Argentina consumes very little soybeans domestically, now that the recent dispute over taxes appears to have been sorted, soybeans present a more attractive planting proposition as the government is less likely to put a block on exports of soybeans.
Argy wheat output is expected around 3mmt lower this season to around 12.5mmt.
At 9am London time soybeans were around 12c higher, with corn up around 5c and wheat up 1/4 to 3/4c. The pound is around $1.8450 having dipped below $1.8330 at one point yesterday.
