Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Evening markets; bulls bank on new month fund rush

Twitter Linkedin eCard

The exit of Dubai fears (for now at least) allowed bulls centre stage in crop markets, encouraged by expectations that the start of a new month will bring a fresh inflow of cash into commodity markets.

The dollar stabilised well below Friday's stronghold, standing at $1.50 against the euro at 20:00 GMT, as waning concerns over Dubai's debt crisis encouraged investors from a currency which has acted as a citadel in difficult times.

A weak dollar makes US exports such as crops more competitive on export markets.

Oil did its bit for the sources of biofuels too by rising 1.5% to $77.22 a barrel, with Wall Street equities, if not jubilant, at least trading only marginally lower.

History to repeat?

With external markets playing ball, investors took the chance to snap up crops – wheat, at least - expected to get a further boost when Tuesday ushers in December.

"Part of the reason for late session gains is the expectation, rightly or wrongly, that large scale, aggressive fund buying will start tomorrow with the beginning of the new month," Vic Lespinasse at, said.

"That is what happened the first two trading days of November and this is what the bulls think (or hope) will happen the first couple of days in December."

Wheat, the Chicago crop which appears the most affected by fund buying, which many believe has divorced prices from the reality of rich global stocks, was the biggest gainer, leaping 3.4% to $5.67 ½ a bushel for December delivery and 3.0% to $5.88 ¾ a bushel for March.

Investors grasping for supportive fundamentals might have settled on the strike at Canada National Rail which the Canadian Wheat Board has termed a "very serious situation, especially ifit goes on for any length of time".

'Borrowed time'

Corn, after a reluctant start, was dragged higher to close up 1.4% at $4.02 ¾ a bushel for December, with the March contract ending up 1.0% at $4.17 ½ a bushel.

Soybeans were the weakest pit in percentage terms, adding 7.5 cents to $10.60 ½ a bushel for January.

This may have been a disappointment to some investors, given a strong performance in Chinese soybeans overnight, adding 2% on the Dalian exchange to a year high, apparently fuelled by fund buying.

However, it faced some headwinds, including a bearish Rabobank report, which warned of the threat of rising South American production, tallying with thinking from many other observers.

US Commodities noted rains in Argentina over the weekend, which had improved prospects for the crop in the world's third-biggest soybean producer.

"Argentina could now produce a 53m-54m tonne soybean crop versus 32m tonnes a year ago," the Iowa-based broker said.

"It appears world soybean values are living on borrowed time."


Twitter Linkedin eCard
Related Stories

Evening markets: Acreage data overshadow grain markets. But cocoa heads higher

Soyoil and soymeal complex gains, helped by Argentine weather and US biofuels talk. But corn, soybeans and wheat struggle as key data hit the radar

Millennials drive Louis Dreyfus campaign to become 'more than a merchant'

LDC throws further light on a sector shake-up which has already this week seen ADM unveil a revamp, while Cargill declared traditional crop trading "over"

Morning markets: Oilseeds find strength in Argentina, Malaysia dryness

Soymeal leads early headway in the oilseeds complex. But grains find harder to come by, despite lingering worries over US dryness

Evening markets: India emerges as surprise ag market mover, lifting cotton

... while fuelling a decline in in sugar prices. In grains, soybeans stage some revival on a drier trend in the Argentine outlook, but wheat proves mixed
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069