Morning markets: profit-taking puts grains into reverse
The ideas that the latest US Wasde crop report was supportive for grain and oilseed prices continued to pour in on Friday.
“In our view the report was bullish for corn prices, supportive for wheat and neutral for oilseeds,” if bearish for cotton, Luke Mathews at Commonwealth Bank of Australia said.
“This report reinforces that global feed grain supplies are critically tight and that prices must remain strong to ration demand. Consumers cannot afford any production issues over the coming year.”
In Paris, Agritel said: “The report confirmed the tightness of commodities balances.”
That was in line with the comment from brokers on Thursday after the Wasde, the benchmark US Department of Agriculture crop report, cut estimates for US (and world) corn stocks wafer thin, and reduced estimate for domestic wheat inventories too.
The estimate for soybean stocks, while raised a touch, remained uncomfortably tight.
Back to selling
But if investor action speaks louder than analysts’ words.
And there wasn’t a lot of it, in terms of buying activity, on Friday.
