Early Vibe
The overnight market sees wheat around 7-10c lower, with corn down 3-5c and beans up 4-5c.
Beans are currently the strongest looking of the three on continued steady demand from China and planting delays in Brazil. If soaking rains don't arrive in Mato Grosso soon some farmers may have to rethink their cropping plans.
Planting fast maturing beans early in this part of the world means they can be ready for harvest by Christmas, allowing second crop corn or cotton to go into the ground right behind.
If rains don't arrive until second half October, as some are predicting, then some growers may elect to bypass soybeans and plant full season cotton instead.
The dollar is weaker and the euro firmer this morning, with the pound sinking below 1.17 against the latter.
Paris wheat may open lower on the back of the firmer euro and weak overnight eCBOT wheat market. The fact that it closed below recent support at EUR230 and outside the EUR230-236 trading range could also be bearish.
Open interest in November Paris wheat fell below 120,000 lots for the first time in a good while last night.
There's no official final word on German wheat yet, but trade chatter suggests that 50% won't cut the milling wheat mustard. There's lots of talk of high grade French and lower grade German flitting across their respective borders.
London wheat is garnering support from the differential between it and French wheat and also the weaker pound/euro. The HGCA saying that quality is better than average is also friendly for UK wheat. At the end of the day however feed wheat is feed wheat, and feed wheat at GBP170-175 into the mill isn't turning too many compounders on at the moment.
Corn gluten can come into the mill at a good GBP10-15 less than that for example, as the weak dollar opens the door a bit wider for imports of these kind of raw materials.
Beans are currently the strongest looking of the three on continued steady demand from China and planting delays in Brazil. If soaking rains don't arrive in Mato Grosso soon some farmers may have to rethink their cropping plans.
Planting fast maturing beans early in this part of the world means they can be ready for harvest by Christmas, allowing second crop corn or cotton to go into the ground right behind.
If rains don't arrive until second half October, as some are predicting, then some growers may elect to bypass soybeans and plant full season cotton instead.
The dollar is weaker and the euro firmer this morning, with the pound sinking below 1.17 against the latter.
Paris wheat may open lower on the back of the firmer euro and weak overnight eCBOT wheat market. The fact that it closed below recent support at EUR230 and outside the EUR230-236 trading range could also be bearish.
Open interest in November Paris wheat fell below 120,000 lots for the first time in a good while last night.
There's no official final word on German wheat yet, but trade chatter suggests that 50% won't cut the milling wheat mustard. There's lots of talk of high grade French and lower grade German flitting across their respective borders.
London wheat is garnering support from the differential between it and French wheat and also the weaker pound/euro. The HGCA saying that quality is better than average is also friendly for UK wheat. At the end of the day however feed wheat is feed wheat, and feed wheat at GBP170-175 into the mill isn't turning too many compounders on at the moment.
Corn gluten can come into the mill at a good GBP10-15 less than that for example, as the weak dollar opens the door a bit wider for imports of these kind of raw materials.
