December 07th

Market Report

Our market reports are opinion based and are not instructions to trade. You are responsible for your own trading decisions.

Overnight the US Ag markets saw another sell off carrying on from where they left off on Friday. CBOT Wheat has now dropped 67cents in the last month. More talk of a bigger Canadian wheat crop, India looking to sell more reserves of wheat and Australia dominated. There has been a change in the law in China requiring all mid sized cities to hold enough reserves of grains to meet a set demand. This could continue to provide support to markets although it is unclear how much they have already bought and what if any these levels are.

STG has weakened as the Brexit negotiations continue to falter and confusion reigns. Not sure anyone is surprised by this, it is now all about who blinks first. Markets hate uncertainty and this is a classic example.