The Morning Vibe

Posted by Nogger - a legend in his own mind at 10:21 | Categorized as

14/09/12 -- The overnight Globex market is generally a little firmer, with beans up 7-9 cents, corn up 4-5 cents and wheat around 10 cents firmer.

All the front month September contracts in Chicago go off the board this afternoon.

Egypt bought wheat again late yesterday (for last week Nov delivery), with French origin grain coming out at around parity with the other winning bids from Russia and Ukraine.

Russian wheat was offered, and accepted, though with a delivery period through to the end of November. It is probably now only a matter of days before Egypt are back to test the water again, this time for 1st week December shipment.

The winning bids were all around the USD361/tonne mark, including freight. US and Canadian wheat worked out around USD25-27/tonne more expensive once freight was added. The market doesn't seem overly bothered about this for now, the prices paid were around USD16/tonne higher than the Nov 1-10 Russian wheat bought only a week ago and USD6/tonne higher than they paid for Nov 11-20 delivery just two days ago.

Tunisia is tendering for 50 TMT of optional origin durum wheat for Oct/Nov shipment. Bangladesh is also in the market for wheat, an order likely to be filled by India.

Brussels issued 409 TMT of soft wheat export licenses this week, bringing the cumulative marketing YTD total to 2.5 MMT, down 14% on this time last year.

In stark contrast they also issued 206 TMT of barley export licenses this week, bringing the marketing YTD total to 1.65 MMT - that's up 83% on this time last year. The world wants barley it would seem, and whilst the Southern Hemisphere harvest in Australia and Argentina is months away yet Europe is proving to be one of the few shops open it appears.