Today is Presidents’ day with the CME and ICE New York closed, London and Paris will remain open.
Cold temperatures heading for the U.S. plains and Midwest were supportive of wheat prices towards the end of last week, while risk of a cold snap in eastern Europe and Ukraine is lending support in Europe. Around 15% of wheat crops in the eastern region are expected to be threatened by the cold, with the coldest temperatures expected tomorrow.
Brent oil is also at its highest since January 2020 at $63.4/Barrel. Growing hopes over easing of lockdowns and U.S. stimulus as well as Middle East tensions are supporting tailwinds this morning.
On Friday, traders were puzzled between taking profits before the long weekend and keeping long positions ahead the arrival of another cold snap in the US winter wheat areas.
The soybean market is still benefitting from the strong Chinese demand coupled with the late arrival of Brazilian supplies. The situation in Brazil could lead to a bottleneck in the ports in coming weeks if most of the harvest is achieved in March.
Friday, funds were net buyers in 4 500 lots of soybean and 3 500 lots of wheat. They were net sellers in 5 500 lots of corn.
The €25/t Russian wheat export tax has come into force from today.