Headlines:

  • Sugar prices slump on technical selling, as India sits on its hands
    Raw sugar futures prices in New York extended their losses of the previous session, plumbing new multi-month lows, after breaking definitively downward through the key 18 cents a pound level. With technical support definitively breached, markets are now looking at the prospect of a record Brazilian crop, the Indian government apparently determined to kick the can of potential imports down the road for as long as possible. March raw sugar futures were trading down 2.2% in early afternoon deals in New York, at 17.32 cents a pound, having falling to 10-month lows of 17.05 cents a pound earlier in the session.
  • Ag sector ‘should start thinking now’ about Brexit fallout
    So, next week Theresa May is to fire the starting gun on Brexit talks. That starts a countdown of two years before – under rules laid down in the now infamous Article 50 – the UK departs from the European Union, whether a political deal has been agreed or not. But that does not mean that Britons, including those in the food and agriculture sector, should wait until 2019 before they should act on Brexit, says Michael Aubrey, partner and joint leader of food and agribusiness at UK law firm Mills & Reeve. Clearly where the talks lead the UK, and what agreements the country will make with its biggest trade partner, is difficult to predict.

Summary:

Corn and Wheat futures closed lower today while Soybean futures held serve bouncing off of support finishing in positive territory. After a weekend of rain falling on key regions of Mato Grosso, Brazil Soybean and Corn futures were lower to open the week. Today the Brazilian agriculture consultant group, Agroconsult, raised its Soybean harvest forecasts 3 million metric tons to 111 million metric tons joining the USDA who had already raised its forecasts earlier this month. Before the day settled Soybeans managed to recover presumably because of a price jump from Palm Oil. Palm Oil posted its largest   intraday advance in a week on the Malaysian Exchange. Beans continues to hold steady very close to the 1000 mark and a big break from this level could prove to be damaging to Bean prices near-term. Despite a big move down for the USD Wheat futures fell again fueled by reports of the possibility of beneficial rainfall in the southern Plains this week. Crude Oil futures returned to weakness after pausing for a few days. The price chart for Crude continues to look broken and points to continued downward pressure.