Market Recap 22.12.09
Wheat gave back the previous day's gains on low volume and a stronger USD. The expectations of a good South American crop were attributed for some of the sentiment in the soybean pit, but if they really thought that, would it have only come down 11usc/bu? Egypt is looking to sign a supply agreement with Russia; Russia signed supply agreements with Brazil earlier this year, but it does not seem that it led to any business. Conversely, Russia is sending plenty of grain to Egypt without any supply agreements, so go figure. Egypt is saying that it has 5 months' supply of wheat - last time they said something like that they went on a huge buying spree, let's see if they look for more grain this week! Turkey sold wheat and barley at tender, so some business is happening. The derivatives markets are making the same amount of sense as the movie Highlander 2 - "there can be only one" - don't think so, big fella.
Date of Publication: 22 Dec 09 9:16am ACST
Source: ABB Grain
