Strategy of the Week


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30 May 2011


Morning Report: Weather concerns continue to drive the markets

CME Wheat +5 (820), corn +13 (758), beans -5 (1380) and canola +7.6 (600) while the dollar was sold off for much of Friday, it recovered during the night session and is currently at 1.069. International canola markets continue to find support from European rapeseed values, which has rallied sharply over the past month over drought concerns in Western Europe. In addition rains over the weekend in Manitoba and Saskatchewan will further delay growers from getting into the paddocks and resuming sowing. But after such a surge over the last month, is its time for canola to take a turn..? The uncertainty of weather and the preceding impact on planting delays in the eastern Midwest and northern plains will have on corn acreage and yield continues to be the bullish theme driving the market. However, despite the gains prices remained lower for the week, with improved planting outlooks for next week limiting advances. After a eleven month absence, Russia announced plans to end their grain export ban on 1st July, however they still left the door open that further restrictions may be possible to curb food inflation if it rises in the future. And given it is an election year in Russia, anything could happen!





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