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London wheat closed down £2.75 (November 19 £143) as extremely bearish USDA report caused markets to crash
USDA report was described as ‘report from hell’. Funds were long corn and the bearish report triggered a major sell off with corn limit down 25 cents.
Corn area put at 90 million acres, only slightly down from July figure of 91.7 million acres, which was severely doubted, and yield and stocks increased to complete the rout.
Report numbers still questioned, for example, the intended corn area in March was 92.8 million acres and yesterday’s report had prevented / unplanted area at 11.2 million acres so how can corn area be 90 million acres? Total corn, wheat and soya acres put at 212.3 million acres against 226.1 in 2018.
Questions will continue to be asked, the next major factor will be yield surveys in September.
Report was possibly bullish beans but corn markets dragged everything down.
President Macri defeated in elections, he was pro market and Argentinean government could return to interventionist policies.
UK harvest continues between rains but concern increasing about quality of malting crop author: Joe Beardshaw