Markets across the board took a hammering yesterday. Admittedly they are still at very high levels and prices look good but it does feel that with all the negative economic news traders are realising that food demand will tail off. Fundamentally the world is still short of food commodities but this does not meant that prices continue to rise.
We still have a lot of weather to go and the states wheat is looking vulnerable but the corn is getting a lot of beneficial moisture and could be a bumper harvest.
On the oilseed front, there are still discussions on whether palm oil will come into the EU and Malaysia does have stocks to shift as they can't store all their production. Biofuel mandates are a hot topic of discussion and the food vs fuel argument rages on.
Volatility is the watchword and the 50p moves in the wheat market are long gone, its £5- £10 moves in a morning that are causing the issues.