Current Market News

Thursday 23rd February 2012

Following recent losses in the grain markets traders viewed conditions as oversold and subsequently reduced some risk exposure in the lead up to the USDA crop forecasts, which are to be held over the next two days.  Wheat closed +11c, corn +8c, beans +1c, canola unch, crude -0.2%, the Dow -0.2% and the AUD a touch lower again at 1.0634.  While the market is still anticipating a big jump in corn acreage and therefore production, conditions were viewed as oversold as questions surfaced over what figures the USDA will use for trend-yields and demand.  The grains sector also found additional support on the possibility of demand switching to the US from the Black Sea as the cold weather takes its toll on the regions logistics.  Several cargoes of Ukraine corn headed for Japan have been delayed, with suggestions buyers are now seeking US supplies for April-June shipment.