Overnight Markets - Monday Morning Roundup
eCBOT grains are largely firmer, but off earlier highs, trimmed by falling crude oil and a strong dollar.
At 7.30GMT soybeans are 8-14 cents firmer, having posted gains in the 20's earlier in the session, as the weather outlook for South America turns drier than forecast last week.
Mostly dry conditions with just a few light showers Wednesday and Thursday, returning to dry conditions again Friday, with temperatures normal to above normal, is the revised forecast for Argentina.
Argy corn is about to start pollinating and soybeans flowering in the next couple of weeks.
The Argy winter wheat crop has already been slashed by drought from 16mmt to around 9mmt across the last few months. This clearly highlights that the recent dryness is not just a recent development. This situation has been ongoing for the last 8 months or so. If you recall Argy winter wheat plantings were reduced, in part by drought (plus other political factors), when the crop went into the ground back in May/Jul.
Corn and wheat on eCBOT are unchanged to a couple of cents firmer, wheat having been around 7 cents higher, with corn as much as 5 cents firmer.
South Korea is seeking to buy 110,000 metric tons of corn for feed production in a tender.
The Australian wheat harvest is finally in the bag in NSW, producing a crop of around 6.5mmt, significantly higher than last season's drought ravaged 1.8mmt. Despite the increased crop, Australian wheat is higher this morning following CBOT's strong close Friday night with ASX January A$5 higher at A$292.50/tonne.
Crude oil back below $40 at $39.70 is what is keeping the grains in check this morning, after the entire sector posted strong gains Friday night. Despite swingeing cut in production by OPEC, demand continues to slump and stocks keep rising.
A firmer dollar is also tempering gains in the grains sector. The euro is under pressure with the ECB expected to cut interest rates in the Euro Zone later in the week. At 8am GMT the pound stands at $1.5060 against the dollar and 1.1275 against the euro.
At 7.30GMT soybeans are 8-14 cents firmer, having posted gains in the 20's earlier in the session, as the weather outlook for South America turns drier than forecast last week.
Mostly dry conditions with just a few light showers Wednesday and Thursday, returning to dry conditions again Friday, with temperatures normal to above normal, is the revised forecast for Argentina.
Argy corn is about to start pollinating and soybeans flowering in the next couple of weeks.
The Argy winter wheat crop has already been slashed by drought from 16mmt to around 9mmt across the last few months. This clearly highlights that the recent dryness is not just a recent development. This situation has been ongoing for the last 8 months or so. If you recall Argy winter wheat plantings were reduced, in part by drought (plus other political factors), when the crop went into the ground back in May/Jul.
Corn and wheat on eCBOT are unchanged to a couple of cents firmer, wheat having been around 7 cents higher, with corn as much as 5 cents firmer.
South Korea is seeking to buy 110,000 metric tons of corn for feed production in a tender.
The Australian wheat harvest is finally in the bag in NSW, producing a crop of around 6.5mmt, significantly higher than last season's drought ravaged 1.8mmt. Despite the increased crop, Australian wheat is higher this morning following CBOT's strong close Friday night with ASX January A$5 higher at A$292.50/tonne.
Crude oil back below $40 at $39.70 is what is keeping the grains in check this morning, after the entire sector posted strong gains Friday night. Despite swingeing cut in production by OPEC, demand continues to slump and stocks keep rising.
A firmer dollar is also tempering gains in the grains sector. The euro is under pressure with the ECB expected to cut interest rates in the Euro Zone later in the week. At 8am GMT the pound stands at $1.5060 against the dollar and 1.1275 against the euro.