Overnight Market
Grains are firmer on the overnight eCBOT market, supported by a weaker dollar and continuing weather concerns. Latest eCBOT prices now available on the right hand side of this blog.
Yesterday's weekly US export sales for soybeans were very strong, with China once again taking the majority of kit, as the continue building domestic stocks.
Latest figures show that the Chinese imported 3.3mmt of soybeans in December and are forecast to import a similar amount this month.
Chinese Lunar New Year is not very far away however, when they often disappear completely from the market.
By contrast, export sales for corn & wheat were disappointing. However, drought in South America is supportive for corn as well as soybeans.
For wheat, the last couple of weeks of export sales have been extremely poor, but temperatures as low as minus 55 (including wind chill) are certainly plenty low enough to cause winter kill to any crops unprotected by a layer of snow in the Plains and western Midwest.
Russia keep mopping up most of the export orders, but at least that means that they are taking something off the table and eventually their surplus will be eroded. Won't it?! Although Russian wheat is reportedly $5-7 cheaper than EU wheat there are some logistical problems in buying Russian grain, which may push some business our way.
The dollar is weaker across the board as fears of much greater than originally anticipated credit losses at top US banks mount.
The pound is also up against the euro, ahead of Eurozone trade balance deficit data due later today.
Live forex rates now also available on the right hand side of this blog.
Yesterday's weekly US export sales for soybeans were very strong, with China once again taking the majority of kit, as the continue building domestic stocks.
Latest figures show that the Chinese imported 3.3mmt of soybeans in December and are forecast to import a similar amount this month.
Chinese Lunar New Year is not very far away however, when they often disappear completely from the market.
By contrast, export sales for corn & wheat were disappointing. However, drought in South America is supportive for corn as well as soybeans.
For wheat, the last couple of weeks of export sales have been extremely poor, but temperatures as low as minus 55 (including wind chill) are certainly plenty low enough to cause winter kill to any crops unprotected by a layer of snow in the Plains and western Midwest.
Russia keep mopping up most of the export orders, but at least that means that they are taking something off the table and eventually their surplus will be eroded. Won't it?! Although Russian wheat is reportedly $5-7 cheaper than EU wheat there are some logistical problems in buying Russian grain, which may push some business our way.
The dollar is weaker across the board as fears of much greater than originally anticipated credit losses at top US banks mount.
The pound is also up against the euro, ahead of Eurozone trade balance deficit data due later today.
Live forex rates now also available on the right hand side of this blog.
