Wheat futures rallied.
- Chicago wheat September contract up US24c/bu to 550.75;
- Kansas wheat September contract up 17.25c/bu to 459.5;
- Minneapolis wheat September contract up 9c/bu to 527.75;
- Corn September contract up 0.25c/bu to 326.25;
- Soybeans August contract up 8.25c/bu to 886.25;
- Winnipeg canola November contract down C$1.20/t at C$478;
- MATIF wheat September contract up €1.50/t to €187.25;
- MATIF rapeseed August contract up €3.50/t to €385.25;
- Brent crude September contract up US$0.89 per barrel to $43.79;
- Dow Jones index up 228 points to 26,870;
- AUD firmer at $0.7006;
- CAD firmer at $1.3508;
- EUR firmer at $1.1412.
Talk of China buying SRW
Rumours about Chinese purchases of SRW have gained new strength, helping spur the rally on the board. That said, the new flash was all corn and beans, 389,000t beans and 132,000t corn, both new season. We still haven’t seen any confirmation of business trading. That may come in Thursday’s sales reports. But in the short term it is all speculation, albeit positive, and “buy the rumour, sell the fact” ideas abound. Markets did however break some new moving averages which added technical support. Time will tell what will happen if nothing is confirmed, or if it’s only a boat or two.
Talk about China investigating the quality of state reserve corn held in storage added to fraud rumour over several years about stock held for, and storage costs billed to, the state. Would scapegoats be found? We’ll see. But ultimately China’s purchases of US grain are a far bigger impact to grain markets than an internal investigation.
Source: Lachstock Consulting