Overnight Market Developments
The eCBOT market is modestly higher Thursday morning supported by new that Argentine farmers will stage a rally in Cordoba on Feb 20th, after Argy president Cristina Fernandez said that the government will not be budging on the issue of export tax repeals on grains.
Indeed Fernandez went some way towards admitting that the country had little option as it was far too heavily reliant in the taxes to do anything else but press ahead with them. The taxes are "an essential part of the country's economic balance," she is quoted as saying Wednesday.
A repeat of last years four month long dispute looks like it could be on the cards, which will certainly disrupt grain supplies and probably adding a bit of front-end premium.
Japan bought 117,000mt of milling wheat in a tender overnight, with 75,000mt of it US origin. Syria, Iraq, South Korea, Pakistan, Bangladesh, Egypt and the Philippines are all in the market for wheat too. Congestion at the ports is said to be putting Australia out of the equation until at least April. Still, Russia seems to have any quantity and any quality you want at heavily discounted prices.
China continues to play down the effects of drought on it's wheat crop this year, saying that rain and irrigation over the last couple of weeks has seen the area affected fall by two-thirds.
On the other hand it has also said that it will buy up to 10mmt of corn on the domestic market between now and the end of April to boost reserves and support prices.
Crude oil is flat around $35/barrel ahead of today's delayed stocks data from the US Energy Dept., those figures are expected to show stocks rising by more than 3 million barrels.
The pound is up against both the dollar and euro in early trade, so I guess we will see London wheat open lower again later this morning.
Indeed Fernandez went some way towards admitting that the country had little option as it was far too heavily reliant in the taxes to do anything else but press ahead with them. The taxes are "an essential part of the country's economic balance," she is quoted as saying Wednesday.
A repeat of last years four month long dispute looks like it could be on the cards, which will certainly disrupt grain supplies and probably adding a bit of front-end premium.
Japan bought 117,000mt of milling wheat in a tender overnight, with 75,000mt of it US origin. Syria, Iraq, South Korea, Pakistan, Bangladesh, Egypt and the Philippines are all in the market for wheat too. Congestion at the ports is said to be putting Australia out of the equation until at least April. Still, Russia seems to have any quantity and any quality you want at heavily discounted prices.
China continues to play down the effects of drought on it's wheat crop this year, saying that rain and irrigation over the last couple of weeks has seen the area affected fall by two-thirds.
On the other hand it has also said that it will buy up to 10mmt of corn on the domestic market between now and the end of April to boost reserves and support prices.
Crude oil is flat around $35/barrel ahead of today's delayed stocks data from the US Energy Dept., those figures are expected to show stocks rising by more than 3 million barrels.
The pound is up against both the dollar and euro in early trade, so I guess we will see London wheat open lower again later this morning.
