European Grain Markets
- The slump in the grain market exchanges continues, with yesterday’s news that, after two months of persistence, major stock indices around the world are now in unequivocal decline
- Not only is the ECB raising interest rates by the expected 0.5%, but they are also highlighting that there are several more similar, if not bigger, hikes to come! In short – the recession we have been talking about for quite some time now seems guaranteed
- With no direct link, the MATIF grain markets have been “warning” us about it for quite some time, and without exception all remain a bloodbath for the bulls
American Grain Markets
- Taking advantage of the weak dollar, Chicago grain markets are performing well, from a bulls’ perspective, with decent gains for wheat and corn
- Direct consequence of the weak dollar is impressive export sales last week, exceeding expectations for all crops, including soybeans
Black Sea Grain Markets
- With Matif futures depreciating and still quite weak Chicago, international demand remains active, with consecutive wheat auctions taking place yesterday and today
- Unfortunately for the bulls, the Algerian-negotiated prices yesterday confirm a continued decline in the physical markets from which futures actually “draw” their inspiration