Source :Saxo Bank
Following the US government report recently confirming the dramatic impact on US grain production following the worst US drought in decades, the price on the three key crops have lost their upside momentum but stabilized near the highs.
LONDON (Commodity Online): Any improvement in weather will be too late for corn, as the harvest is approaching fast. Talks about reducing the ethanol mandate could reduce the amount of corn going towards fuel and help lower prices, but for now prices are being supported, despite reduced momentum, by the continued expectations for tight global supplies.
Following the US government report recently confirming the dramatic impact on US grain production following the worst US drought in decades, the price on the three key crops have lost their upside momentum but stabilized near the highs, Saxo Bank noted in a report.
Attention has now turned towards the upcoming harvest and for any signs of reduced demand following the strong rally into August.
Wheat in both Paris and Chicago is being supported on speculation that much reduced exports from Russia will increase export demand from other regions.
Soybeans yield and production levels may still manage to improve, as rain has been forecast for the US Midwest next week.
Following the US government report recently confirming the dramatic impact on US grain production following the worst US drought in decades, the price on the three key crops have lost their upside momentum but stabilized near the highs.
LONDON (Commodity Online): Any improvement in weather will be too late for corn, as the harvest is approaching fast. Talks about reducing the ethanol mandate could reduce the amount of corn going towards fuel and help lower prices, but for now prices are being supported, despite reduced momentum, by the continued expectations for tight global supplies.
Following the US government report recently confirming the dramatic impact on US grain production following the worst US drought in decades, the price on the three key crops have lost their upside momentum but stabilized near the highs, Saxo Bank noted in a report.
Attention has now turned towards the upcoming harvest and for any signs of reduced demand following the strong rally into August.
Wheat in both Paris and Chicago is being supported on speculation that much reduced exports from Russia will increase export demand from other regions.
Soybeans yield and production levels may still manage to improve, as rain has been forecast for the US Midwest next week.
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