European Grain Markets
- The battle for supremacy in the grain markets continues and yesterday’s advantage for the bears once again illustrates the strength and importance of technical resistances.
- MATIF’s depreciation comes amid a sharply higher dollar and successive downgrades of EU major grain and oilseed production estimates
- Among the few legitimate reasons for the depreciation, it is probably just the weather and forecasts for more rainfall and cooler weather in Europe and the US
American Grain Markets
- The upward momentum in Chicago grain markets is also waning, with only the Kansas and Minneapolis wheat markets reporting marginal gains yesterday
- The latest models show cooler and wetter weather in the first week of August across much of the Corn Belt, which logically puts pressure on corn and soybean markets
Black Sea Grain Markets
- Although of rather symbolic significance, President Putin’s promise to African leaders that Russia would provide up to 50mt to 6 of the poorest countries free of charge probably had an impact on wheat weakness yesterday
- The maximum 300kmt in question is, of course, a drop in the ocean, both of the total imports into Africa, estimated at up to 90Mt, and of Russian exports, estimated at up to 48Mt