The new US stimulus package is being discussed this week, what’s to be included or excluded, while macro markets await the outcome.
The rest of the world is also starting to look at more potential stimulus.
Continuing lockdowns harming domestic consumption are seen in the EU as factors contributing to poor EU GDP figures.
So, in the absence of fresh news of Chinese business there’s been a swing back to profit-taking by operators and most markets settled about 1pc lower.
Only matif wheat rose 1pc, helped by Egyptian wheat bookings.
Egyptian GASC tender, indeed, was eagerly expected since mid-January after the cancellation of its previous tender.
Finally, yesterday, Gasc bought 480 kt of wheat, of which 240 kt of French origin!
The processed price came out at $ 293.7 / t Fob, a jump of $ 23.7 / t compared to the previous deal last December.
The remaining volumes come from Russia (120 kt), Ukraine (60 kt) and Romania (60 kt).
The average landed price in the US$311-312/t range C&F, and including GASC costings.
This will tighten the French balance sheet a little more, with a carryover stock at the end of the campaign which could fall below 2.5 Mt.
Consequentially, matif wheat offered a small rebound on Tuesday.
On the contrary, all products prices decreased on Chicago, first the wheat futures, in the context of profit-taking by funds ahead of the USDA report on 9 February.
The decline was also motivated by the strength of the dollar, causing a loss of competitiveness on the international scene for US origins.
Corn prices, on the other hand, lacked the energy to regain positive territory, despite the favorable withdrawal of the Eurodollar parity, and despite new flash sales has seen 115,000t of old crop US corn sold to Mexico and 60,000 t to South Korea.
There not been new China business to feed the bulls.
The soybean complex also declined despite the clear delay in harvesting work in Brazil.
In Mato Grosso, indeed, only 4.7% of the area is harvested compared to 17.6% last year to date.
This delay also caused a sharp contraction in the country’s exports last month, to only 50 kt, against 1.5 Mt a year earlier.
The fundamentals have not changed much with tight balance sheets, however, market fell with some profit-taking by traders.
European rapeseed for its part suffered some losses, in the wake of a Malaysian palm under pressure after the announcement of an increase in Indian import taxes this year.
Also canola prices fell back yesterday after posting a double top from a chartist point of view.
We will see as the sessions will close tonight.
