RSS
Twitter
Linked In
News In
Markets
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Evening markets: grain prices rebound with hopes for Greece

Twitter Linkedin

So George Papandreou, the Greek prime minister, is to survive a no-confidence motion.

And that will clear the way for the further austerity measures the country needs to secure a E12bn rescue package backed by other eurozone states.

That, at least, was the scenario being bet on in financial markets, where risk assets across the board had a more positive day.

London shares closed up 1.4%, while Wall Street stocks were up more than 1% in late deals.

The

dollar

, investors' favoured safe haven, fell 0.6% against a basket of currencies as confidence improved. A weaker dollar improves the competitiveness of dollar-denominated assets, including many commodities.

And many raw materials, including grains, enjoyed their most solid progress for quite some while.

Weather worry

Buying was encouraged by technical signs, given the extent of the recent declines, which had seen Chicago wheat, for instance, lost $1 a bushel over six sessions, and touch its lowest level since the start of December.

"The market has taken a great deal of risk premium out of the market. The market is now deeply oversold," US Commodities said, also noting a key report due next week on US crop sowings - the prospect of which might be encouraging many investors to take a cautious stance.

Also, the weather took a turn for the worse, with analysts taking increasing notice of the prospect of hot weather early next month, a forecast highlighted on Monday by Agrimoney.com.

"The US weather looks a bit more threatening. Some forecasters have a ridge in the 11-to-15 day outlook that stays. Others have it staying for 2-3 days, then the jet stream flattens," US Commodities said.

"We do not need the pattern to go dry with shallow roots."

Corn

crops will hardly have been encouraged by the excess moisture of late in the Corn Belt to forage deep for water.

Chicago vs Kansas

Furthermore, the threat of flooding has stuck around, posing a number of crop threats, including to the soft red winter

wheat

crop (the type traded in Chicago), while rains further south are seen holding up a hard red winter wheat harvest which has so far beaten the historical pace.

Chicago's July contract soared 2.3% to $6.74 ¼ a bushel with its Kansas hard red winter peer, which does not attract as much speculative interest (for which read short-covering this time) adding a more modest 0.3% to $8.03 ½ a bushel.

In Europe, Paris wheat for November added 0.4% to E212.50 a tonne, while its London peer gained 0.9% to £174.00 a tonne.

'Not a bullish sign'

Back in Chicago, corn gained 1.0% to $7.07 ½ a bushel for July, maintaining a premium over Chicago wheat, but losing quite some ground against the new crop December corn lot, which added 3.0% to $6.80 ¼ a bushel.

This worried Darrell Holaday at Country Futures as to the sustainability of Tuesday's rebound.

"The strength in all of the grains would be more impressive if the old crop/new crop spreads were gaining in value. Instead they are losing value," he said.

"That is not a bullish sign."

At least

soybeans

did a better job of distributing gains more equally, adding 1.0% to $13.48 ¾ a bushel for July delivery, and 1.1% to13.49 3.4 a bushel for the new crop November contract.

And New York

cotton

achieved a mega version of the so-called bear spread, standing up the exchange maximum of 6.0 cents, at 154.73 cents a pound, in late deals for July delivery, while the new crop December cotton fell 0.2% to 123.87 cents a pound.

By Agrimoney.com

Twitter Linkedin
Related Stories

Evening markets: South American double whammy brings ags back down to earth

Ags lose early gains, undermined by a tumble in Brazil’s real, and falling rain in Argentina. Still, wheat futures remain in positive territory

Can cotton prices extend their rally?

History suggests futures will not stay long in the 70s cents a pound. So which way will they trend?

Morning markets: Hard wheat regains premium over soft, amid US dryness worries

Kansas City wheat outperforms, as Plains precipitation worries extend to a dearth of snow cover. But Kuala Lumpur palm oil hits a 16-month low

Evening markets: Ags gain, as funds begin to get that year-end festive mood

Ag prices recover, helped by the likes of more positive comment on US export competitiveness, and some more negative talk on Argentine rains
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069